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    Vikshita Vitthal Gujaran in News

    10-Oct-2022 06:32 AM


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    Where are gold prices headed? Good news appears to be en route

    This, in turn, has led real yields to surge, with the TIPS (Treasury inflation Protected Securities) yield currently above 1.5 percent, which has increased the opportunity cost for carrying gold.
    With attractive bond yields, the US becomes a favoured destination for investments, which strengthens the dollar.
    This aggressive tightening has begun to take a toll on the economy.
    If because of the Fed prioritising growth over inflation, price pressures, which are currently at a four-decade highs (Graph C), spiral out of control or become entrenched, we can see inflation expectations getting unanchored, which, along with lower nominal yields, would bring down real yields and push gold prices up.
    So, where are gold prices headed finally?

    Source - Money Control