ANZ Research sees gold continuing to be a good hedge against inflation. "When gold backed the US dollar, it was a hed
ANZ Research sees gold continuing to be a good hedge against inflation.
“When gold backed the US dollar, it was a hedge against inflation and
a way of protecting investor purchasing power during high inflation
periods. Today, its impact is weaker and linked more to inflation
expectations than the actual inflation rate. Investor demand for
gold has been rising since Russia invaded Ukraine, which is linked to
both inflation expectations and haven demand. Should the Fed move aggressively to contain inflation, we could see consequences for the gold market,” ANZ notes.
“Prices are sitting in a neutral zone of USD1,920–50/oz. A break aboveUSD1,960/oz would be a bullish signal,” ANZ adds.
Note, since this was written, gold has broken $1960 and trades at $1965.
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