Gold shines as markets eye inflation, macro concerns

By Staff reporter / November 15, 2021 / www.mining-journal.com / Article Link

"The gold market is perhaps one of the more classic signs of inflationary concerns - this is a play on US ‘real' (adjusted for inflation expectations) rates though, where the combination of a better economy in Q4, record negative US real rates and rising inflation is one the gold bulls will seek out precious metals," Pepperstone head of research Chris Weston said.

"The Fed may need to promote a move higher in real rates, but the knock-on effect is they risk the stock market finding sellers - notably in growth stocks.

"A downside break of -2% in 5-year US real Treasuries could be the trigger for gold to push into and above $1900."

Meanwhile macro concerns are adding to gold's safe haven allure, including further Brexit trade war concerns and broader fears over the stability of China's property market.

Among the mining majors, Freeport-McMoRan rose 0.8% in New York on Friday, Barrick Gold was up 0.27% in Toronto and BHP was off 0.5% in Australian trade this morning.

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