Gold rose for the fifth consecutive day, the longest consecutive rise since July. The risk of rising inflation has enhanced the attractiveness of gold. Spot gold prices rose above US$1,800 per ounce-a key technical level since mid-2020. Although the trend of the US dollar has not yet reflected the rising expectations of continued inflation and interest rate hikes, the price of gold is climbing because the market is worried that the Fed is acting too slowly.

Tyler Richey, co-editor of Sevens Report Research, said that real interest rates are very low, as low as they have been since the beginning of the epidemic, which is good for gold because inflation expectations have risen faster than benchmark interest rates. The upward trend in interest rates seems to continue, but at a certain point in time, if price pressures are really temporary, inflation is estimated to reach a peak. In this case, rising interest rates and a stronger dollar offset high but stable inflation expectations. , The price of gold may peak and begin to decline. Gold bulls believe that the dollar has been falling in recent days after hitting a high point earlier this month, which is conducive to rising prices of assets linked to the dollar.

ActivTrades senior analyst Ricardo Evangelista wrote in a report: After reaching its annual high in early October, the U.S. dollar has been falling. As concerns about inflation spread around the world, the market has gradually adapted, which means that the U.S. dollar has been boosted at the beginning of the year. , Now will also push other currencies to new highs, then the dollar will be relatively restrained, and then support gold.

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