The gold market is once again a stunning distance of $ 1,800. According to Market Analyst Neils Christensen, the new acceleration can pushed it further up, since the markets can re -adjust their expectations for potential interest rate increases from the Federal Reserve.
“The Fed did not say anything that could prevent gold from rising over $ 1,800 again”
George Milling Stanley, the head of Global Global Advisors, said that since June, investors and markets have been very aggressive in price hikes. Strategist makes the following comment:
Federal Reserve President Jerome Powell, on Wednesday, shrinking the balance sheet and possible interest rate hikes is certainly not a connection.
Kriptokoin.comAs you have followed from the news, on Wednesday, the federal reserve began to reduce monthly bond purchases as expected and the Central Bank is waiting for the Tapering process to be completed by mid -2022. However, after the monetary policy decision, Jerome Powell stressed that the committee did not look at interest rate hikes in the near future. In his speech at a conference following the Fed’s interest rate announcement, Jerome Powell underlined the following:
Politics is in a good position to address reasonable results. Today it will be early to raise interest rates. We want to see that the labor market has improved further.
According to Analyst Neils Christensen, the FED President says that it is not in a hurry to raise interest rates, but the markets continue to pricit interest rate hikes until June next year. However, George Milling Stanley says that these estimates, which should continue to support gold prices, expect to change in the new year:
There is absolutely nothing that the Fed says that gold can prevent it from rising over $ 1,800 again. After Jerome Powell said, the market will now have to re -set its expectations. I can’t wait to see what the market will decide.
According to the strategy, gold is more attractive to protect against inflation risk
In addition to the changing interest expectations, George Milling Stanley says that as the stock markets continue to rise at a record level after a record level, the gold expects to attract more investor interest:
The stock markets were essentially in a great sense of risk for the entire 2021. The market has been far ahead of the real economy. Stock prices do not reflect the fact that there are hired signs wherever you look.
The strategist states that he does not expect to see a major correction in the stock markets, but still a small decline tendency will be sufficient to bring the role of gold in the portfolio to the forefront. George Milling Stanley adds that gold is currently more attractive to protect against inflation as a risk of risk protection.
Although rising inflation prints are positive for gold prices, George Milling Stanley states that the appearance is still unclear and explains that inflation has risen for several years in the last important inflationary period of the 1970s. The strategist states that in this period, gold prices increased by 16 %and makes the following assessment:
As a result of high inflation, I think that inflation should clearly take more than four months to return to 15 %or 16 %per year.
