Gold: Energy-driven inflation weighs – ING
ING analysts Warren Patterson and Ewa Manthey report Gold failed to benefit from the equity sell-off and falling US Treasury yields, with spot prices down 2.8% and nearing $4,000/oz. They argue the Gold market is focused on higher Oil prices and their inflation implications, which could reinforce tighter central bank policy while US inflation remains above the 2% target.
Higher energy undermines Gold
"Gold prices failed to benefit from yesterday's equity sell-off and the significant fall in US Treasury yields, with the 10-year yield falling back below 5%. Instead, gold prices came under pressure."
"Spot prices fell 2.8% and are nearing $4,000/oz."
"The gold market appears more focused on higher oil prices and what it could mean for inflation — and ultimately central bank policy."
"With US inflation still above the central bank’s 2% target, higher energy prices could intensify price pressures and strengthen the case for tighter monetary policy."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)
Nothing in this material constitutes investment advice, personal recommendation, investment research, an offer, or a solicitation to buy or sell any financial instrument. The content has been prepared without consideration of your individual investment objectives, financial situation, or needs, and should not be treated as such.
Past performance is not a reliable indicator of future performance and/or results. Forward-looking scenarios or forecasts are not a guarantee of future performance. Actual results may differ materially from those anticipated.
Mitrade makes no representation or warranty as to the accuracy or completeness of the information provided and accepts no liability for any loss arising from reliance on such information.
Recommended Articles
