“Gold is starting to look quite attractive, at a time when the bet on the US economy is waning”said Edward Moya, principal analyst at OANDA.
Although gold is considered a hedge against inflation, Rising rates and bond yields increase the opportunity cost of holding bullion, which does not earn interest.
Analysts say that gold movements have been influenced lately by the dollar and rate hike projections, rather than safe-haven flows, and that bullion also moved parallel to stock markets at times.
“Gold’s safe-haven appeal could fade further if the Federal Reserve successfully fights inflation without pushing the US into a recession,” said Carsten Menke, head of Next Generation Research at Julius Baer.
The Fed on Wednesday announced the biggest interest rate hike in more than a quarter century.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
