The price of GOLD has been struggling since last August. At that time, the government started its full-scale action in response to the Covid-19 crisis pushing the price of GOLD down. However, GOLD met strong support at the start of April.
There could be a lot of reasons for GOLD to rise, however, the main drive is inflation. Inflation data remains a major topic this month, and last week’s US inflation report has people concerned. The government is trying to overcome the inflation problem with more stimmies. The real question is, will it work? Lots of reports will be coming out very soon regarding inflation and the GOLD bulls will make sure we know all about it.
On a more serious note, two trillion dollars in stimulus this year will generate less GDP since the industries are not fully recovered. This will cause inflation. How will the inflation rate react to the upcoming macroeconomic data releases. Yesterday, Retail Sales and Industrial Production in China did not meet the forecast, meaning the inflation situation in the US in the short term could worsen.
What are your thoughts on how GOLD will react to inflation over the next couple of weeks?
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