According to MKS PAMP GROUP, the gold narrative has changed following the latest US inflation data. Nicky Shiels, head of metals strategy at MKS PAMP GROUP, believes that “the previous thinking (strong CPI = Fed accelerates bond-buying reduction = lower gold)” has changed.
Analyst draws attention to US data and its “gold narrative”
Meanwhile, the rally that analysts have been waiting for is thought to be here. Gold closed above $1,835 an ounce Wednesday. Change in fundamentals Cryptocoin. com
As we have reported as , it came after the inflation rate in the USA hit the highest level in 30 years in October. “Price action highlights a shift in the narrative, with the point where CPI beat expectations well,” Shiels said. This is supported by the higher-than-expected 6.2 percent October inflation figure, as well as two other important factors.
A close below $1,835 could end the rally, according to expert
Also, according to the analyst, the yellow metal is quite cheap as a hedge against inflation risk compared to alternative assets such as Bitcoin, which also benefits gold. “It is still a cheap, low-weight and much less volatile hedging asset against cryptos/alternative assets,” Shiels said. He also says that the issue of whether gold or crypto is the better hedging asset needs to be discussed. “Correlations that do not need to be causation suggest that gold has good inflation protection in 2020, while crypto has gotten better in both years,” the analyst says.
1,700-1, according to experts. 1,830-1 from the $850 range. It is extremely important to watch the price chart of gold in the next few weeks as it slides to $900. Shiels warned that a close below the $1,835 level could mark the end of the current rally. The price of gold is changing hands at $1,852 an ounce, down 0.5 percent at the time of writing. It has seen a significant increase in the last 1 week.