Inflation Data and Its Impact on Gold’s Movements

10/13/2021
4:41 pm

Today, 10/13/2021, inflation data in America was released at 0.4% “September” and recorded an increase of 0.1% from what it was, and this means that the Fed should head to tighten monetary policy, define the program, and reduce asset purchases actually, and before the scheduled date in “November”.

The Fed has no other option until the economy needs the support of central banks to grow normally, and this in itself constitutes an obstacle for central banks at the present time, and with the increase in inflationary pressures, the markets are exploited by pricing large increases in interest rates and large investors are largely betting that policy will be tightened. Cash is faster than it is now

Gold also recorded gains this morning, Wednesday, since the opening of the Asian markets until this moment at the price of 1768, and there are several reasons that made gold shine its luster, including waiting for the results of the US Federal Reserve meeting, where investors are looking for accurate evidence that determines the timetable for launching a program to reduce asset purchases, as well as the global economy’s fear of An inflationary recession due to the problems caused by the repercussions of the Corona virus, and the rise in energy prices contributed indirectly to the rise in gold prices globally, in addition to the economic crises in Europe and America.

All of this contributed to the rise in gold prices as purchases increased during the past week, so it is possible that the rise in inflation data could be the starting point for gold.