Gold Extends Gain as Inflation Risks and Virus Concerns Persist
Comment of the Day

October 25 2021

Commentary by Eoin Treacy

Gold Extends Gain as Inflation Risks and Virus Concerns Persist

This article from Bloomberg may be of interest to subscribers. Here is a section:

“Gold and silver’s recent strong run of gains received a temporary setback on Friday in response to a sudden bout of taper tantrum following comments by Fed Chair Powell,” Ole Hansen, head of commodity strategy at Saxo Bank A/S, said in a note. “At the same time, however, he talked down the risk of raising interest rates while also expressing concern over persistently elevated inflation.” 

Eoin Treacy's view

Around the world, central banks are raising interest rates in response to inflationary pressures that are both more persistent and intense than many anticipated. Some countries will benefit from this turn of events. They have positive balance of payments, booming exports and their currencies are appreciating. That group is concentrated among the commodity exporters.

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