Gold to go down the Road…
Markets are concerned about how aggressive the Federal Reserve will need to be to reduce inflation to 2%, which is causing gold to decline for the fourth consecutive week.
Stronger-than-anticipated growth figures and persistent inflation rates this week shocked the markets.
In reaction, gold underperformed; April Comex gold futures ended at $1,851 an ounce, down 1.3% on the week.
“More than most people thought, inflation would be sticky. More evidence that the economic data is reliable “Bart Melek, global head of commodity strategy at TD Securities, spoke to Kitco News. “The next Fed action may be a 50 basis point change. And it’s possible that the central bank won’t be able to stop there. And longer, greater rates follow.”
The rising value of the US dollar is an issue for gold. “It’s being questioned if the U.S. currency would drop quickly,” Melek remarked.