Does Inflation Have An Impact On Gold?

Does Inflation Have An Impact On Gold?

Gold and cryptocurrency prices in global markets have long been uncertain. Although there is a lot of research on this topic, gold prices are incredibly mobile and continue to move depending on many variables. Therefore, it is necessary to take a look at what share gold has in inflation.

The Decline In The Price Of Gold Continues

After two consecutive weeks of decline, the price of gold fluctuated under the influence of inflation statistics released on Friday in the United States. In the medium term, this decline is expected to continue for a while. However, it should be noted that there is no clarity at any point.

Gold prices reacted to the release of U.S. inflation statistics, which reinforced expectations that the Fed’s rapid tightening cycle would recede.

Does Inflation Have An Impact On Gold?

How Did The Markets React?

Gold traded at $1,808 per ounce, down 0.1% from the previous price. Earlier this month, the gold price had reached its highest level since April 2022.

The Fed is constantly monitoring the U.S. inflation index, which rose in January. This could put pressure on the authorities to raise interest rates further. This could have a negative impact on the gold price.

Treasury Statement

U.S. Treasury Secretary Janet Yellen said in an interview on Saturday that the data released showed that “the fight against inflation is not over.”

Silver and platinum also fell in the spot market today, while palladium rose.

However, it should be remembered that the price of gold does not depend only on one exchange or one variable. Therefore, it should be kept in mind that both after the current rise and after short-term declines, other movements will come to the fore and create a corresponding roadmap. It is emphasized that special attention should be paid to this issue.

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