Channel Down. Not looking like a buy point for me.
But why?
Gold does not generate a yield. If interest rates continue to rise and you’re holding gold, you’re forgoing the interest income you could earn on dollars if you put them in a bank account or invest them in bonds. Maybe that’s why rising interest rates tend to create headwinds for gold. Dunno.
The markets expect the Fed to fight inflation with more rate hikes, thus decreasing the appetite to hold holding gold. Maybe? This is just one of many hypotheses.
I am not sure but I check it every so often.
It appears Gold is moving with the market for now like the coins are. Gold is having some short term buying opportunities here and there, only to go back down when the market does
another somersault.
"Even based on the government’s flawed CPI, inflation rose by about 7% in 2021"
A random economist.
No recommendation.
“Gold is money. Everything else is credit.” – J. P. Morgan
But why?
Gold does not generate a yield. If interest rates continue to rise and you’re holding gold, you’re forgoing the interest income you could earn on dollars if you put them in a bank account or invest them in bonds. Maybe that’s why rising interest rates tend to create headwinds for gold. Dunno.
The markets expect the Fed to fight inflation with more rate hikes, thus decreasing the appetite to hold holding gold. Maybe? This is just one of many hypotheses.
I am not sure but I check it every so often.
It appears Gold is moving with the market for now like the coins are. Gold is having some short term buying opportunities here and there, only to go back down when the market does
another somersault.
"Even based on the government’s flawed CPI, inflation rose by about 7% in 2021"
A random economist.
No recommendation.
“Gold is money. Everything else is credit.” – J. P. Morgan