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Gold Market: Wins the fight between Inflation and Reflation!

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 The gold market breaks its chain with interest rates as prices fall back to more than $ 1,800 an ounce even though the 10-year bond yield is at its highest level for almost a year, by more than 1.3%.

Although inflationary pressures are beginning to take place, we are overwhelmed by the expectation that government measures and measures to revive the central banks will benefit the U.S. economy. To be faster than current predictions.

"There is a difference between reflation, which stimulates the economy to return to normal growth, and excessive inflation, which is a rise in wages and prices,"

that although inflation expectations are rising, they are only returning to the levels seen before the U.S. economy was devastated by the COVID-19 epidemic. Last year inflation was shattered by the deflationary impact of the virus, prompting governments around the world to shut down all unnecessary services and businesses.

"Gold is not responding to inflation pressure because there is currently no evidence of inflation,"

Although inflation pressure has subsided at the moment, that could easily change if history were a factor.

The Japanese model makes a serious case against inflation; however, the post-WWll model makes the inflation cycle more effective, thanks to greater efforts to promote it. The last time we saw such a stimulus in the U.S. was in response to stress and WW ll, which brought about a monetary cycle when the annual change in CPI reached 19.7% in March 1947."

While inflation is a major bullish factor in gold, the risks associated with lower growth, the lower price environment could also support prices.

"Such risks include debt problems, and even more so, serious commercial and financial policies, which make financial inequality worse, and social unrest,''


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