TORONTO, ONTARIO, July 29, 2022 (GLOBE NEWSWIRE) — Clermont Meridian Trading, has released reports on ‘Why Gold Shines After Contraction in US Economy’. Gold prices have continued to climb as a contraction in the U.S. economy increased demand for safe-haven assets, according to analysts at Clermont Meridian Trading. The rally is also driven by a less belligerent tone from the Federal Reserve, which raised interest rates by a further 75 basis points earlier this week.
On Wednesday, Federal Reserve Chairman Jerome Powell commented that the tenor of upcoming U.S. economic data would determine the timing of the next interest rate hike in September. Finance executives at Clermont Meridian Trading have viewed Powell’s vague guidance as opening the door for a rate hike of just 50 basis points in September.
“We are convinced Powell’s comments could mean the Fed will pivot toward a slower pace of rate hikes, which will benefit gold and silver even further. The unforeseen contraction of the U.S. economy means that both the peak in Treasury yields has been made and a bottom for gold has been formed. The stagflation playbook is bullish for gold prices, and moving forward, that is how our traders will be positioning themselves.” said Matthew Bird, Institutional Director of Equities at Clermont Meridian Trading.
Gold prices continued their rally after U.S. data revealed that the domestic economy shrank at an annual 0.9% pace in the second quarter, marking the…
