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Thoughts on Gold and Rates after Recent CPI
The latest CPI print didn't exactly scream 'transitory' and watching the bond market's reaction, it’s clear the Fed is still in a tough spot. I'm keeping a very close eye on $GLD and $SLV, not necessarily for a breakout run, but more as a hedge against continued inflation stickiness. If the market starts pricing in higher rates for longer, then any significant re-pricing in commodities could create some interesting plays, especially given how equities like $COMP are still managing to hold up relatively well around 11,485.
1 comments · 5 points
That's a very pragmatic approach. I've been thinking along similar lines, especially with the persistent inflation narrative. Do you have a specific target for what you'd consider "higher rates for longer" or are you more focused on the trend itself?