On May 23, the Fed’s May meeting minutes gave some support to gold prices as the ten-year Treasury note (IEF) yield dropped almost 5.1 basis points to 3.0%.
Among the core indicators playing precious metal prices is the rise in US inflation, which is currently at 2.2%—almost at growth of 1% compared to the start of 2016.
Rising oil prices The pace of inflation in the United States unexpectedly strengthened in December 2017 when the core consumer price index (or CPI) rose by 1.8% year-over-year (or YoY), including a monthly advance of 0.3%. The monthly gain was higher than economists’ expectation of a rise of 0.2%, according to Bloomberg. Inflation expectations (TIPS) have […]
GLD was trading at $124.10 on January 3, 2018. GLD snapped its longest winning streak as it rose for 11 straight days before entering negative territory on the day.
Thailand saw impressive growth in 1Q17 due in part to external demand and public investment. Its GDP rose 3.3% in 1Q17 as compared to a 3% rise in 4Q16.
We see inflation-linked bonds such as US Treasury Inflation-Protected Securities (TIPS) as a valuable hedge against inflation. We also like inflation-linked debt in the Eurozone and Japan as a potential substitute for nominal bonds. Market Realist: inflation-linked bonds could turn out to be a better choice Inflation-linked bonds (TIP) provide a hedge against inflation by […]
I’m not that enthusiastic about this asset class because TIPS are currently not cheap. In fact, in this environment the real return on a TIP, i.e. how much money an investor gets back after inflation – is actually negative.
