Price of Gold increasing 15% in 2 months

The price of gold has been increasing over the past 2 months as the US has slowed its pace of rate hikes.

The price of Gold increasing 15% in 2 months. This is the best since 2020 when the global market shock from the coronavirus was the worst.

Inflation in the United States has come down from its peak and has shown a marked slowdown. The Fed is lowering the extent of interest rate hikes. When interest rates rise, the attractiveness of gold as an investment decreases.

Meanwhile, Fed officials have not signaled a turn away from tightening. There is a broad expectation in financial markets that the Fed will have to loosen its grip on aggressive tightening.

The Fed’s slowing of rate hikes is in contrast to other central banks, such as the ECB, which put downward pressure on the dollar, which was strong last year. A weaker dollar tends to lift the price of commodities like gold, as it lowers costs for non-US buyers.

Analysts see room for a further rally in gold prices. Central banks around the world have bought gold at record levels, and individual investors are shifting their attention to gold.

Gold’s further rally depends on U.S. inflation and interest rate outlook. Philip Streible predicted that gold could break through rates higher if the US CPI comes out on the 12th weaker than expected.

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