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Gold Prices Continue to Fall as Yields and Dollar Increase

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Sources for MetaNews reported today that the senior analyst at ActivTrades, Ricardo Evangelista, wrote in an email today “The markets appear increasingly unsettled by the Fed’s taboo on inflation, with a growing number of investors taking a net view that the central bank’s ambiguity, mixing a new hawkish stance with dovish declarations from some officials, will ultimately translate into higher interest rates sooner than previously expected.” What’s more, he said, “Such a scenario will underpin the dollar and provide more turbulence for bullion, which could, therefore, generate more short-term losses for gold.”

What most analysts and investors are asking themselves of late is whether or not this new inflation is a passing circumstance, or something more sustained and intolerable. The Fed keeps telling us that a big chunk of the now higher-than usual inflationary rate is non-permanent, and they cite supply chain issues and employment problems as businesses reopen in the U.S.

The Personal Consumption Expenditures Price Index is now at 3.9% which is nearly double the 2% prediction of the Fed. The Federal Reserve remarked that they will let inflation continue to sit at a higher level. But it is far above the current acceptable highs of between 2% and 3% per year. Of course, one should keep in mind that energy and food costs are not included in this particular estimation.

All in all though, gold prices have stayed under a lot of pressure as market investors are actively selling while yields for government debt instruments also rise. These factors contributed heavily, combined with a better outlook of the USD, in the sinking of gold today. Sources for MetaNews reported today that the senior analyst at ActivTrades.

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Billy Houghton

Billy Houghton is a top acclaimed and sought-after commodities futures trading expert. The expertise and in-depth level of analysis that is offered by Billy Houghton is what has managed to put him at the stage of being the top ranked author for MetaNews among multiple different categories. Throughout his career, Billy has specifically spent over three decades on Wall Street fine-tuning his skills, which included over two decades at a trading desk. In more recent times, specifically the last decade, Billy has been researching algorithms of AI in futures trading, and believes they are the future of trading.
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