{"id":59669,"date":"2021-10-05T07:00:28","date_gmt":"2021-10-05T12:00:28","guid":{"rendered":"https:\/\/olduvai.ca\/?p=59669"},"modified":"2021-10-05T07:00:28","modified_gmt":"2021-10-05T12:00:28","slug":"with-stagflation-ahead-how-will-gold-respond","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=59669","title":{"rendered":"With Stagflation Ahead, How Will Gold Respond?"},"content":{"rendered":"
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With Stagflation Ahead, How Will Gold Respond?<\/a><\/h3>\n<\/div>\n
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\"How<\/p>\n
Photo by\u00a0Zla\u0165\u00e1ky.cz<\/a><\/span><\/div>\n<\/div>\n

Analysts think stagflation might be the boost gold needs right now<\/strong><\/p>\n

The gold market continues to experience strange action, having most recently fallen to $1,720 only to bounce back to $1,760 by Friday\u2019s time. It was a repeat of the week before, where strong selling pressure was met with a lot of buyers.<\/p>\n

Kitco interviewed<\/a>\u00a0a number of market analysts for their take on the bigger economic picture and how gold will respond. Daniel Ghali, a commodity strategist at TD Securities, told Kitco that the headwinds gold seems to be facing come primarily in the form of the markets pricing in scenarios that may or may not happen:<\/p>\n

What\u2019s been driving gold these days is market pricing of Fed\u2019s exit. Both the tapering and a potential rate hike on the horizon were being priced in. As a result of that, we\u2019ve seen substantial repricing of the Treasury markets, and that has been primarily weighing on gold.<\/p><\/blockquote>\n

Even though it has been consistently\u00a0pointed out<\/a>\u00a0that the Fed is poorly positioned for either tapering or rate hikes, the markets seem determined not to be surprised.<\/p>\n

Ghali thinks the re-emergence of the threat of\u00a0stagflation<\/a>, a mixture of rising prices and a static or weakening economy, could be a wake-up call to market participants. Indeed, there seems to be little to support the idea of any kind of economic strength that would cause the Fed to act in a hawkish manner, and worries over inflation are by now ubiquitous.<\/p>\n

Walsh Trading co-director Sean Lusk reiterated that gold ended the week with a bullish note:<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

With Stagflation Ahead, How Will Gold Respond? Photo by\u00a0Zla\u0165\u00e1ky.cz Analysts think stagflation might be the boost gold needs right now The gold market continues to experience strange action, having most recently fallen to $1,720 only to bounce back to $1,760 by Friday\u2019s time. It was a repeat of the week before, where strong selling pressure […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[18769,124,374,2908,426,647,3303,839],"class_list":["post-59669","post","type-post","status-publish","format-standard","hentry","category-economics","tag-birch-gold-group","tag-central-banks","tag-gold","tag-gold-market","tag-inflation","tag-precious-metals","tag-stagflation","tag-us-dollar"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/59669","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=59669"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/59669\/revisions"}],"predecessor-version":[{"id":59670,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/59669\/revisions\/59670"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=59669"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=59669"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=59669"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}