Commodity Trade Mantra

Posts Tagged ‘Weak Inflation’

The Big Question now is - Where does Gold go from Here?

Gold has held its own despite higher interest rates and threats of more. That tells me we’re seeing a flight to quality, meaning people are losing confidence in central banks all over the world. They realize the banks are out of bullets. So gold has been moving up in what I would consider a challenging environment of higher rates. The question now is, where does gold go from here?

Fed Minutes on Inflation, Debt Limit, Balance Sheet & the Effect on Gold

If the Fed minutes indicate that more Fed policymakers see the weak inflation as long-lasting, it could reduce the chances of an anticipated hike, thus the USD would drop. On the other hand, the corrective move in the US Dollar would gather pace if the policymakers blame low inflation on transitory factors. The Fed minutes due today would shed light on the future movements in gold.

Desperate-To-Hike Fed Admits : Inflation Is Not As Low As You Think

Having now admitted that all of the market-based expectations of inflation are wrong, depending on the importance of the credit channel, the Federal Reserve, by pegging the short term rate at zero, have essentially removed one recessionary market mechanism that used to efficiently clear excesses within the financial system.

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