Gold Knows Inflation Isn’t Going Anywhere

Summary

  • The Fed’s recent rate cut has fueled a gold price rally, but inflation expectations, not just interest rates, are driving gold’s bullish trend.
  • Persistent high costs in rent and food, key components of Americans’ budgets, are pushing investors towards gold as a hedge against inflation.
  • Despite declining overall inflation rates, specific sectors like food and shelter continue to see rising prices, supporting the demand for gold.
  • I recommend maintaining exposure to gold through physical bullion or gold-backed ETFs, as rising living costs suggest continued upward trends for the metal.
Shopping Trolley Growth

Jonathan Kitchen

To the surprise of almost no one, the Fed’s decision to cut interest rates last month sparked yet another gold price rally in what has been the strongest year for the metal since 2020. And most observers view the

Clif Droke is the chief analyst for the Cabot Turnaround Letter. He has covered equities and commodities, specializing in gold, since 1997 and has worked for Cabot Wealth Network since 2020.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

 

Shared by Golden State Mint on GoldenStateMint.com

This entry was posted in Investment, Precious Metals, Silver, silver-rounds. Bookmark the permalink.