Gold Prices Are Exploding But Can It Keep it Up ? (Video)
Gold Prices Are Exploding But Can It Keep it Up ? Video – KitCo News
Gold prices were on fire Wednesday, rebounding from losses made in the wake of stronger than expected U.S. inflation data. Kitco News caught up with Maxwell Gold of ETF Securities.
“What sparked gold’s price move today is the increase in inflation. I think that is boosting inflation expectations, and I think that’s giving some consideration into what the Fed is going to do this year,” Gold told Kitco News.
He added that higher inflation expectations provide tailwinds for all cyclical commodities, not just gold.
Spot gold was up 1.4 percent at $1,349.94 an ounce at 1:05 p.m. EST.
The ETF Securities director said that despite recent turbulence in the markets and with commodity prices, gold’s current rally can be sustained due to other macroeconomic factors.
“Beyond the inflation factor, we’re seeing the dollar remain weaker,” he said, “I think that we are structurally in a dollar bear market and I think that it could boost gold prices in this range.”
The dollar initially rose after the morning’s inflation report which showed U.S. consumer prices rose more than expected in January.
The market expert added that should we see more equities volatility, gold could spike upward to the $1,400 range.