Markets start to believe in higher for longer

Bloomberg/John Stepek/2-22-2023

“The bad news is this means markets are starting to believe central banks — and the Federal Reserve specifically — when they say that interest rates will have to remain higher for longer. That’s quite a turnaround, and it’s one that has resulted in stock and bond markets globally running into some turbulence in the past week or so.”

USAGOLD note: These could be the circumstances under which algo trading systems will be forced to acknowledge that their current dollar/gold formulation no longer reflects the reality investors face and needs adjustment.