Suddenly, the US Dollar Index fell 6.70% over the last two weeks, marking the biggest decrease in the currency since 2020.
Information is not investment advice
Many investors treated gold as a protection against inflation. However, last week, gold lost its major support and dropped despite rising inflation. Why did it act like this?
US dollar gains ahead of the US CPI data on July 13th, pressing gold to new lows!
On May 4, the US Federal Reserve revealed the federal funds rate for the next two months. Even though a 50 basis points hike was widely expected, the future is not so clear. Let’s figure it out bit by bit!
Apart from inflationary pressures, all other factors were serving as tailwinds to gold after reaching $2000 in August 2020. But inflation along with the slowing global economy are the factors that make gold shining brighter.
Gold is one of the most popular trading assets in the world, with a several age history and an unbelievably large market capitalization of $11 trillion.
Two issues will determine who will have the upper hand in 2022: gold or the US dollar…