356
143 shares, 356 points

As gold prices regressed above $1,800, a gold forecast came from a company. The firm expects gold prices to continue to rise because it thinks the Federal Reserve is unlikely to bring inflation under control anytime soon.

Wilshire Phoenix manager drew attention to US data on gold price

Wade Guenther, managing partner at Wilshire Phoenix, which launched the Wilshire Shares Enhanced Gold Trust (WGLD) earlier this year, said it’s not surprising that gold has been sluggish over the summer, as bond yields have soared. Yields on 10-year bonds are close to three-month highs. At the same time, Guenther noted that the yield on 10-year bonds has roughly doubled from last year.

Guenther added that gold is struggling to attract safe-haven demand as stock markets continue to move from record highs to record highs. But Guenther also said that rising inflation and the threat of rising stagflation are forcing many investors to reassess their inflation and safe-haven protection needs. Cryptocoin. com, the US Consumer Price Index has been over 5 percent for the last five months. “If you had asked me last year, what would the gold price be if inflation were 5 percent, I would have said that we would reach record levels and return to 2,000 again,” Guenther said.

“Current inflation environment is not consumer driven”

However, inflation pressures triggered expectations for the Central Bank to tighten monetary policy instead of supporting gold prices. They expect the Federal Reserve to cut monthly bond purchases before the end of the year, sdollarser said. At the same time, markets are pricing in a rate hike as early as June 2022. “I feel like people still believe in the Fed, and I just don’t see the Fed getting ahead of the inflation curve,” Guenther said.

Guenther added that the current inflationary environment is different from the last few years because it is not driven by consumer demand. Fiyadollarsar is on the rise due to major supply chain issues around the world. Some sdollarser think it may take years to fix the global supply bottleneck. “There is nothing the Fed can do to fix the supply chain,” Guenther said. “The Fed’s tools don’t work because inflation is on the long side of the road. This is not inflation driven by consumer demand,” he says.

Gold forecast from Wilshire Phoenix manager: A rise is imminent

Not only is the Federal Reserve failing to fix the global supply chain, it’s also executive; He also noted that monetary policy can only be tightened so much. He said rising government debt is limiting how high interest rates can go. With gold prices rising above $1,800 an ounce, Guenther said he expects it to be just a matter of time before the market sees new bullish momentum. Guenther added that due to the relatively low volatility, the firm’s adaptive gold-backed exchange-traded fund still continues to invest 100 percent in the gold market.


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