Consumer prices are rising at the fastest rate in three decades. CNN reports many larger companies, like Tyson Foods, believe inflation won’t ease up soon, which means price hikes are likely going to continue. That trend is causing a much-needed boost to gold. E.B. Tucker, Director of Metalla Royalty and author of “Why Gold, Why Now?”, told Kitco News that he believes inflation is going to kill the American Dream.

 

CNN Business/Julia Horowitz
Inflation fears are boosting gold and the US dollar

The stock market is booming, and despite uncertainty about the economy, Wall Street is confident it can keep pressing ahead. But as inflation surges, there’s also an undercurrent of anxiety about what the future holds.

Want evidence? Just look at the recent rise in gold and the US dollar.

What’s happening: Gold prices are back above $1,870 per troy ounce, their highest level in five months. The US dollar, meanwhile, is the strongest it’s been since July 2020.

“Inflation upside catalysts are clearly materializing and look unlikely to fade in the near-term,” commodities strategists at JPMorgan said in a note to clients on Monday.

Continue reading, here.

 

Kitco News/David Lin
Inflation is going to kill the American Dream, prices are not done surging – E.B. Tucker

Inflation is now at the highest level since 1990, but it doesn’t stop here said E.B. Tucker, director of Metalla Royalty and author of “Why Gold, Why Now?”

“6% is only the beginning. It’s going to go much higher, it’s not transient. None of these people are going to lower prices, this is here to stay,” Tucker told David Lin, anchor for Kitco News.

Although wages are rising, the pace of growth is still not keeping up with inflation. The Atlanta Fed Wage Growth Tracker’s latest data point, as of October, is 4.1% year-on-year, still below the 6.2% headline CPI reading for the same period.

You can read the full story, here.

 

Yahoo Finance/Sam Meredith
Fed is losing credibility over its inflation narrative, Mohamed El-Erian says

The Federal Reserve is losing credibility over its long-standing view that inflation is transitory, according to Mohamed El-Erian, chief economic advisor at Allianz.

“I think the Fed is losing credibility,” El-Erian said Monday. “I’ve argued that it is really important to reestablish a credible voice on inflation and this has massive institutional, political and social implications.”

He was speaking to CNBC’s Dan Murphy at the ADIPEC energy industry forum in Abu Dhabi, the United Arab Emirates.

El-Erian contended that the Fed’s inflation stance weakened the central bank’s forward guidance and undermined President Joe Biden’s economic agenda. He said that people shouldn’t forget that those on low incomes are hardest hit by rising consumer prices.

You can read the full story, here.

 

 

 

 

 

 

 

 

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