Just last week, we were talking about gold’s next target at its 200-day moving average at $1,850 an ounce.
While gold remains an important long-term inflation hedge, it also faces short-term headwinds as the latest data puts pressure on the U.S.
There is still no clear picture of the inflation outlook and the economic recovery remains uncertain.
“Either you’re behind the curve, you’re going to cause inflation, or if you don’t want to be any more behind the curve, and then you signal, ‘I’m going to tighten,’ then you could have a bond market and a credit market crash that could really weaken the economy, if not stall it.
While the data points to higher inflation, some economists have noted a significant factor in the marketplace is still global supply chain disruptions caused by the COVID-19 pandemic.