Gold serves as a renowned inflation hedge due to its intrinsic properties and historical performance during periods of rising prices.
Gold operates as an inflation hedge as gold possesses an inherent value that transcends currencies and economic fluctuations. Its scarcity, durability, and desirability make it a sought-after asset, particularly during times of economic uncertainty or currency devaluation. Gold tends to have an inverse relationship with fiat currencies, particularly during periods of high inflation.
As the value of paper money declines due to inflation, the relative value of gold often increases, making it an attractive hedge against purchasing power erosion.
Gold is also trying to break higher at the moment and a more dovish Fed could send it soaring out of a potential flag pattern forming on the daily chart. Also, note the seasonal bias for gold longs out of the Federal Reserve meeting as highlighted by Seasonax’s event tracker! This is one event not to miss! The major trade risk here is that previous seasonal trends do not necessarily repeat themselves again each year.
Disclaimer: Past results and past seasonal patterns are no indication of future performance, in particular, future market trends. seasonax GmbH neither recommends nor approves of any particular ...
Disclaimer: Past results and past seasonal patterns are no indication of future performance, in particular, future market trends. seasonax GmbH neither recommends nor approves of any particular financial instrument, group of securities, segment of industry, analysis interval or any particular idea, approach, strategy or attitude nor provides consulting nor brokerage nor asset management services. seasonax GmbH hereby excludes any explicit or implied trading recommendation, in particular, any promise, implication or guarantee that profits are earned and losses excluded, provided, however, that in case of doubt, these terms shall be interpreted in abroad sense. Any information provided by seasonax GmbH or on this website or any other kind of data media shall not be construed as any kind of guarantee, warranty or representation, in particular as set forth in a prospectus. Any user is solely responsible for the results or the trading strategy that is created, developed or applied. Indicators, trading strategies and functions provided by seasonax GmbH or on this website or any other kind of data media may contain logical or other errors leading to unexpected results, faulty trading signals and/or substantial losses. seasonax GmbH neither warrants nor guarantees the accuracy, completeness, quality, adequacy or content of the information provided by it or on this website or any other kind of data media. Any user is obligated to comply with any applicable capital market rules of the applicable jurisdiction. All published content and images on this website or any other kind of data media are protected by copyright. Any duplication, processing, distribution or any form of utilisation beyond the scope of copyright law shall require the prior written consent of the author or authors in question. Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or lifestyle. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. Testimonials appearing on this website may not be representative of other clients or customers and is not a guarantee of future performance or success.
