Daily Gold Market Report

The Return of Inflation:
Analyzing Worldwide Economic Trends and Central Bank Challenges

(USAGOLD – 1/22/2024) Gold prices are slightly down this morning as the positive U.S. economic data has restrained the enthusiasm of precious metals bulls, leading to reduced market expectations for early U.S. interest rate cuts by the Federal Reserve. Gold is trading at $2020.93, down $8.56. Silver is trading at $22.00, down 66 cents. Peter St Onge recently wrote an article that discusses the resurgence of inflation worldwide, contrasting the optimism of economists like Paul Krugman with recent data indicating a rise in inflation rates. The Bureau of Labor Statistics reported a significant increase in the Consumer Price Index (CPI), including both the overall CPI and the “core” CPI that excludes food and energy. “Finally, so-called “SuperCore” inflation — not a joke. Which the Fed pulled out of its hat to strip out housing costs. That one’s doing even worse, hitting almost 5% annualized. That feeling when your fake statistics don’t work out,’ St Onge emphasizes. Despite the Federal Reserve’s efforts to control inflation through tight monetary policy, inflation persists due to continued government spending and financial dynamics on Wall Street. St Onge concludes with, “Central banks across the West — really across the world — have painted themselves into the mother of corners, potentially facing durable global stagflation for the first time in 50 years, this time paired with a financial crisis that would make it a combination not seen since the 1930’s.”

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