If you take a longer view of Gold for the year, it is ~unchanged and has outperformed many other asset classes (Cryptos, Nasdaq).
With regards to whether Gold is a hedge against Inflation, it depends on the economic environment. If you have Inflation rising & Growth slowing, it spells Stagflation. Inflation + Growth (Reflation) pairs better with Crude Oil, Gasoline, Tech Stocks.
What is the catalyst for Gold to turn around?
China consumes 54% as the worlds Copper. How are they using lockdowns as a tool to decrease borrowing costs vs. raising their interest rates?
Sign up for a 14-day, no-obligation free trial of our proprietary research with actionable ideas!
Sign Up for Free Trial
Subscribe to our YouTube Channel
Email [email protected] or call 312-278-0500 with any questions -- our trade desk is here to help with anything on the board!
Futures trading involves a substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.
Like this post? Share it below: