Gold prices, $ 1,800 over the week closed the week. Gold has not been able to hold on for the last three weeks in $ 1,800. As it seems, the increasing threat of inflation continues to dominate the gold market. Since inflation forced the central banks, it was a sharp sword for precious metal. In particular, for the Federal Reserve to take a more hawk stance on interest rates. While these developments are happening, we too Kriptokoin.comWe follow famous analysts for gold comments.
Central Banks seem to be quite worried about inflation
The federal reserve is collected next week and there are increasing expectations that they can start to reduce monthly bond purchases. At the same time, due to increasing inflation pressures, markets expect the US central bank to raise interest rates by June 2022.
Bank of Canada (BOC), after announcing that it has completely stopped bond purchase programs, we saw a preview of what could happen on the cards. In addition, BOC foresees an interest rate hike until the middle of next year and states that inflation is a growing concern. In his Boc monetary policy statement, he refers to the following issues:
The main powers that attract prices (high energy prices and supply bottlenecks related to their sponge) seem more powerful and more permanent than expected. The Bank closely monitors inflation expectations and labor costs to ensure that temporary forces that attract prices are not buried in ongoing inflation.
Degussa Chief Economist’s Gold Comments
Gold, which was priced in Canadian dollar, lost about 1 percent after the announcement. And now the main event time. The expected change in the US monetary policy was a turning point around gold, keeping prices below $ 1,800. However, even though prices cannot rise, it still finds strong support over $ 1,750. Many analysts say that while inflation is increasing, state debt has increased.
Degussa Chief Economist Thorsten Polleit says in a recent report that the US economy expects the tight monetary policy to be “naturally cosmetics”, as the US economy cannot meet the higher interest on the ballooning debt. The economist warns that any financial increase in interest rates will be üler equivalent to an earthquake for the global economic and financial system ”. Thorsten Polleit adds that rising inflation continues to reduce real interest rates and this is a positive environment for gold. But for now, we have to wait to see how the FED will show.
“Permanent inflation prints means an environment in which gold tends to shine”
Radisson Mining Resources CEO Rahul Paul, who was asked for gold comments, is in a good position for more rise. Rahul Paul says the following about the appearance of the gold industry:
The US inflation rate is the highest rate we have seen in 13 years. Typically, the FED raises interest rates to keep inflation under control. However, the US government debt is at a record level close to $ 29 trillion. This shows that the Fed is much more difficult to raise interest rates. Because an interest rate hike will have a significant impact on the ability to pay all these debts. This time, I can say that inflation prints will be more permanent, and this means an environment in which gold tends to shine.
Rahul Paul, regarding the merger and purchasing activities in the gold mining sector, states that there were many remarkable transactions last year:
2021 was an intensive year for merger and acquisitions. We have been processed a series of many Canadian Gold Projects. This year, the remarkable operations include Monarch, Eldorado Gold, QMX, Evolution Mining Battle North, Premier Gold. By Equinox and more recently Kirkland Gold by Agnico. I think this trend will only recover forward.
