Gold Demand Upticks In Asia & Inflation Concerns Continue

   Feb-21      2,000      1,045                56,472     12,031                77

   Jan-21          0            28                  38,696     16,666             5,216

   Feb-20      2,000        10                    9,591        361                9,256

    * Source: Swiss customs. Data subject to revision by source.

Gold Price Today

As you can see from the past month, gold demand has had its ups and downs but is mostly on the rise. It peaked at the end of February and fell after upbeat news regarding unemployment, reopening economies, and a stronger US dollar

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gold price inflation 2021 Bullion Exchanges

However, Peter Schiff and others are sounding the alarm that inflation is on the horizon. In his eyes, the Federal Reserve is in a trap. He said to Kitco that the Treasury can either raise interest rates to bankrupt the Treasury or bankrupt the American people as inflation becomes unsustainable. 

“How does [the Fed] fight that inflation without bankrupting the U.S. government? The answer is it can’t. My thinking is, if it can’t fight inflation without bankrupting the U.S. government, it won’t fight the inflation, which means it bankrupts the public because it destroys the value of the dollar.”

This fear around inflation may rally investors to return to alternative investments like gold and cryptocurrency. Although gold demand has not picked up since August, analysts suggest that it is hitting a resistance level at $1,750. Jesse Felder of The Felder Report investment newsletter, states that the price of gold over the last seven months is a healthy correction. He also says the biggest threat to gold markets and gold demand is rising bond yields. Currently, these yields are at their highest level in over a year. So, he suggests investors pay close attention to real yields, including rising inflation. The gold demand, and price, will increase as a direct result of rising inflation. 

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Disclaimer: This article is not meant to serve as professional economic advice. Any action you take upon the information from this article and website is strictly at your own risk.

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