Breaking News

Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Will Inflation Finally Give Gold Lift It Needs?

By Anna CoullingCommoditiesFeb 08, 2021 03:20PM ET

www.investing.com/analysis/will-inflation-finally-give-gold-lift-it-needs-200559355

Will Inflation Finally Give Gold Lift It Needs?

By Anna Coulling | Feb 08, 2021 03:20PM ET

Saved. See Saved Items.

This article has already been saved in your Saved Items

Gold Monthly Chart.

Gold Monthly Chart.

There is much talk of inflation at present, and should it materialize as envisaged by the Fed in 2021, then one of the longer-term beneficiaries will be gold. Since the explosive rally higher during the early part of 2020, gold has been wallowing in congestion as a result of August’s long-legged Doji candle. This candle marked the end of this rally, which had taken gold to a high of $2,100 per ounce before pausing at the $1,800-per-ounce region. The question now is whether the long-awaited rise in inflation will occur given the recent rally in soft commodities prices for staples such as wheat, corn and soybeans resulting in the inevitable pull through in food prices will help to give gold a much needed boost.

If we consider the monthly chart for gold from a technical perspective, there are some encouraging signs to suggest gold is indeed building a platform of support in the current area, so a move higher is likely to follow. Why?

First, consider the volume associated with the move lower from August to November and note that while the price of gold was falling, so was the associated volume. In December we saw what could be considered a two-bar reversal. Moreover, the selling that occurred in January was supported with buying. In other words, buyers stepping back in. And while it is too early to say how February’s candle will close, so far the market appears to be finding support at the $1,800-per-ounce level once more.

In addition, and despite the current pullback, the trend monitor indicator for NinjaTrader continues to remain blue and has yet to signal any pause or reversal. So for gold bugs, it is now a question of waiting for those signs of inflation for which gold then becomes the natural safe haven and hedge.

Related Articles

Volume Reveals Truth Behind Price Action For WTI Oil Futures By Anna Coulling - Jul 23, 2021 4

The sharp sell-off for crude oil following OPEC’s announcement regarding supply management gave us another classic example of volume price analysis in action on the daily chart...

Energy Report: Russia Gas Crunch By Phil Flynn - Jul 23, 2021 5

The oil market continued it’s come back as the bull market is firmly re-establishing itself. The market surged with reports that Russia is ready to introduce a ban and gasoline...

August Fed Tightening Announcement May Not Be Bearish For Commodities By Andy Hecht - Jul 23, 2021 8

This article was written exclusively for Investing.com CPI remains hot as a pistol 'Transitory' is an attempt at calming rhetoric The market price is always the right price Jackson...

Add a Comment

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:

Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

I have read Investing.com's comments guidelines and agree to the terms described.

Write your thoughts here

Are you sure you want to delete this chart?

Post also to:

Replace the attached chart with a new chart ?

1000

Comment Guidelines

Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.

Please wait a minute before you try to comment again.

Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.

Comments (2)

James Pattison Feb 08, 2021 11:40PM ET

Follow this post

Unfollow this post

Saved. See Saved Items.

This comment has already been saved in your Saved Items

Deflation... not inflation...

0 2

Luis Angulo Feb 08, 2021 8:42PM ET

Follow this post

Unfollow this post

Saved. See Saved Items.

This comment has already been saved in your Saved Items

The end of the fiat kingdom. Free the currency from the corrupt politicians

3 0

<div id="comment">
				<div class="comment js-comment" data-comment-id="{commentID}" id="comment-{commentID}" data-user-id="203242173">
    <div class="mainComment js-content">
       <div class="commentInnerWrapper">
        <a href="{userLink}" class="js-user-link"><img src="{userImage}" width="33" height="33" alt="{usernameAlt}" class="img" onerror="this.src='https://i-invdn-com.investing.com/defaultUserMaleTmp.png';"></a><div class="commentBody">
                					<span class="commentUsername">
                    	<a href="{userLink}" class="js-user-link js-user-name">{username}</a>
					</span>
                                <span class="js-date" comment-date="{dateFormat}" comment-date-formatted="{dateFormatted}" title="{dateTitle}">Just Now</span>
                <div class="commentDropDown js-commentDropDownWrapper " data-user-id="203242173" data-cid="{commentID}">
	<a href="javascript:void(0);" class="threeDotsIconSmall js-thinDropdownArrow"></a>
	<div class="tooltipPopup commentActionsPop noHeader js-commentDropDownOptions displayNone">
		<div class="addRow js-option share">
			<a href="javascript:void(0);" class="js-commentSharePopup" data-cid="{commentID}" data-curl="{commentLink}"><span class="smallShareIcon middle"></span>Share</a>
		</div>

<div class="js-option addRow follow">
            <div class="js-follow-post-button">
                <span class="alertfollowIcon middle"></span>Follow this post            </div>
            <div class="js-unfollow-post-button displayNoneImp">
                <span class="alertUnfollowIcon middle"></span>Unfollow this post            </div>
        </div>

<div class="addRow js-option save">
		<a href="javascript:void(0);" class="js-save-item-btn" data-item-type="comments" data-item-id="{commentID}">
			<i class="saveItemBigIcon middle"></i>
			Save		</a>
	</div>
	<div class="addRow saveItemsConfirmation noHover displayNone js-saveItemResult">
		
<div class="content js-saveItemSuccess displayNone">
	<span class="mediumGreenSuccessIcon"></span><span>Saved. See <a href="/members-admin/saved-items" target="_blank">Saved Items</a>.</span>
	<a href="javascript:void(0);" class="bugCloseIcon js-close"></a>
</div>
<div class="content js-saveItemAlreadySaved saveItemAlreadySaved displayNoneImp">
	<span>This comment has already been saved in your <a href="/members-admin/saved-items" target="_blank">Saved Items</a></span>
	<a href="javascript:void(0);" class="bugCloseIcon js-close"></a>
</div>
	</div>

<div class="addRow js-option blockUser js-block-option" data-comment-id="{commentID}"  data-user-id="203242173">
			<a href="javascript:void(0);">
				<span class="blockIcon middle"></span>Block User			</a>
		</div>
				<div class="addRow shareButtons js-sharePopup displayNone">
			<div class="js-shareComment"><span class="js-shareCommentSpan"></span></div>
		</div>
	</div>
</div>
                 <div class="commentAuthor js-comment-by-author"><span class="commentAuthorIcon"></span>Author's response</div>             </div>
		<div id="commentText-{commentID}" class="js-text-wrapper commentText withImage">
							<div id="commentBigChart{commentID}" class="commentBigChart js-comment-chart" onclick="openViewChartPopup('{commentID}')">
					<img src="https://d1-invdn-com.investing.com/comments_images/{commentImage}" alt="{commentAlt}">
					<i class="newMagnifyChartIcon"></i>
				</div>
						<span class="js-text">{commentContent}</span>
			<div class="clear"></div>
							<div class="commentButtons js-not-master-user">
					<a href="javascript:void(0)" class="reply js-reply-btn" data-real-parent-id="{commentID}" data-to-user-name="{username}" data-to-user-id="203242173">Reply</a>
					<div class="inlineblock likeDislikeBox js-like-dislike-box" data-item-id="{commentID}">
	<input class="js-like-checkbox" type="checkbox" name="option" value="Yes" id="like_{commentID}">
	<label for="like_{commentID}" class="like" title="I agree"></label>
	<span class="numOfLikes js-like-count lighterGrayFont">0</span>
	<input class="js-dislike-checkbox" type="checkbox" name="option" value="No" id="dislike_{commentID}">
	<label for="dislike_{commentID}" class="dislike" title="I disagree"></label>
	<span class="numOfDislikes js-dislike-count lighterGrayFont">0</span>
</div>

<div class="reportComment js-flag float_lang_base_2">
						<a href="javascript:void(0);" id="commentFlag_{commentID}">
							<span class="reportCommentIcon middle"></span><span class="inlineblock middle">Report</span>
						</a>
					</div>
				</div>
					</div>
	   </div>
	</div>
	</div>			</div>
			<div id="reply">
				
    <div class="commentReply js-comment js-comment-reply" data-comment-id="{commentID}" id="comment-{commentID}" data-user-id="">
		<div class="commentInnerWrapper"><a href="{userLink}" class="js-user-link"><img src="{userImage}" width="33" height="33" alt="{usernameAlt}" class="img" onerror="this.src='https://i-invdn-com.investing.com/defaultUserMaleTmp.png';"></a><div class="commentBody js-content">
            				<span class="commentUsername">
					<a href="{userLink}" class="commentUsername js-user-link js-user-name" onMouseOver="">{username}</a>
				</span>
                        <span class="js-date" comment-date="{dateFormat}" comment-date-formatted="{dateFormatted}" title="{dateTitle}">Just Now</span>
			 <div class="commentAuthor js-comment-by-author"><span class="commentAuthorIcon"></span>Author's response</div> 			<div class="commentDropDown js-commentDropDownWrapper " data-user-id="" data-cid="{commentID}">
	<a href="javascript:void(0);" class="threeDotsIconSmall js-thinDropdownArrow"></a>
	<div class="tooltipPopup commentActionsPop noHeader js-commentDropDownOptions displayNone">
		<div class="addRow js-option share">
			<a href="javascript:void(0);" class="js-commentSharePopup" data-cid="{commentID}" data-curl="{commentLink}"><span class="smallShareIcon middle"></span>Share</a>
		</div>

<div class="js-option addRow follow">
            <div class="js-follow-post-button">
                <span class="alertfollowIcon middle"></span>Follow this post            </div>
            <div class="js-unfollow-post-button displayNoneImp">
                <span class="alertUnfollowIcon middle"></span>Unfollow this post            </div>
        </div>

<div class="addRow js-option save">
		<a href="javascript:void(0);" class="js-save-item-btn" data-item-type="comments" data-item-id="{commentID}">
			<i class="saveItemBigIcon middle"></i>
			Save		</a>
	</div>
	<div class="addRow saveItemsConfirmation noHover displayNone js-saveItemResult">
		
<div class="content js-saveItemSuccess displayNone">
	<span class="mediumGreenSuccessIcon"></span><span>Saved. See <a href="/members-admin/saved-items" target="_blank">Saved Items</a>.</span>
	<a href="javascript:void(0);" class="bugCloseIcon js-close"></a>
</div>
<div class="content js-saveItemAlreadySaved saveItemAlreadySaved displayNoneImp">
	<span>This comment has already been saved in your <a href="/members-admin/saved-items" target="_blank">Saved Items</a></span>
	<a href="javascript:void(0);" class="bugCloseIcon js-close"></a>
</div>
	</div>

<div class="addRow shareButtons js-sharePopup displayNone">
			<div class="js-shareComment"><span class="js-shareCommentSpan"></span></div>
		</div>
	</div>
</div>

</div>
		<div id="commentText-{commentID}" class="js-text-wrapper commentText withImage">
							<div id="commentBigChart{commentID}" class="replyBigChart displayNone js-comment-chart">
					<img src="https://d1-invdn-com.investing.com/comments_images/{commentImage}" alt="{commentAlt}">
					<i class="newMagnifyChartIcon"></i>
				</div>
				<span id="commentSmallChart{commentID}" class="commentSmallChart pointer js-comment-chart" onclick="openViewChartPopup('{commentID}')">
                    <img src="https://d1-invdn-com.investing.com/comments_images/{commentImageSmall}" width="116" height="52" alt="{commentAlt}">
                    <span class="chartMagnifyOverlay displayNone"></span>
                    <span class="searchGlassIcon chartMagnify displayNone"></span>
                </span>
						<span class="js-text">{commentContent}</span>
			<div class="clear"></div>
							<div class="commentButtons js-not-master-user">
					<a href="javascript:void(0)" class="reply js-reply-btn" data-real-parent-id="{commentID}" data-to-user-name="{username}" data-to-user-id="">Reply</a>
					<div class="inlineblock likeDislikeBox js-like-dislike-box" data-item-id="{commentID}">
	<input class="js-like-checkbox" type="checkbox" name="option" value="Yes" id="like_{commentID}">
	<label for="like_{commentID}" class="like" title="I agree"></label>
	<span class="numOfLikes js-like-count lighterGrayFont">0</span>
	<input class="js-dislike-checkbox" type="checkbox" name="option" value="No" id="dislike_{commentID}">
	<label for="dislike_{commentID}" class="dislike" title="I disagree"></label>
	<span class="numOfDislikes js-dislike-count lighterGrayFont">0</span>
</div>

<div class="reportComment js-flag float_lang_base_2">
						<a href="javascript:void(0);" id="commentFlag_{commentID}">
							<span class="reportCommentIcon middle"></span><span class="inlineblock middle">Report</span>
						</a>
					</div>
				</div>
					</div>
		</div>
    </div>
			</div>
			<div id="show-more-comments">
				<a class="showMoreComments block">
					<span class="arial_12 showArrowafter">Show more comments (<span class="js-amount"></span>)</span>
				</a>
			</div>
			<div id="show-more-replies">
				<a class="showMoreReplies block">
					<span class="arial_12 showArrowafter">Show more replies (<span class="js-amount"></span>)</span>
				</a>
			</div>

Are you sure you want to delete this chart?

Replace the attached chart with a new chart ?

1000

Comment Guidelines

Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.

Please wait a minute before you try to comment again.

I feel that this comment is:

Spam

Offensive

Thank You!

Your report has been sent to our moderators for review

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

More Categories

1D1W1M6M1Y5YMax

	US 30 Futures	34,917.0	+208.0	+0.60%
	US 500 Futures	4,399.00	+39.50	+0.91%
	Dow Jones	35,061.55	+238.20	+0.68%
	S&P 500	4,411.80	+44.32	+1.01%
	Nasdaq	14,837.0	+152.4	+1.04%
	S&P 500 VIX	17.20	-0.49	-2.77%
	Dollar Index	92.912	+0.082	+0.09%

	Crude Oil WTI	72.17	+0.26	+0.36%
	Brent Oil	74.20	+0.41	+0.56%
	Natural Gas	4.046	+0.043	+1.07%
	Gold	1,801.90	-3.50	-0.19%
	Silver	25.235	-0.146	-0.58%
	Copper	4.4553	+0.1178	+2.72%
	US Soybeans	1,348.62	-13.38	-0.98%

	SPDR S&P 500	439.94	+4.48	+1.03%
	iShares Russell 2000	219.55	+1.02	+0.47%
	Invesco QQQ Trust	368.20	+4.25	+1.17%
	Direxion Daily Junior Gold Miners Bull 2X Shares	70.58	-1.53	-2.12%
	iShares Silver	23.35	-0.21	-0.89%
	ProShares Ultra VIX Short-Term Futures	28.68	-0.16	-0.55%
	ProShares UltraPro QQQ	136.56	+4.39	+3.32%

	Apple	148.56	+1.76	+1.20%
	Alphabet A	2,660.3	+91.9	+3.58%
	Tesla	643.38	-5.88	-0.91%
	Amazon.com	3,656.64	+18.61	+0.51%
	Netflix	515.41	+3.64	+0.71%
	Facebook	369.79	+18.60	+5.30%
	Bank of America	37.70	-0.26	-0.68%

Most Popular Articles

Wall Street surges to all-time closing high on earnings, economic... By Reuters - Jul 23, 2021 17

Dollar Bears on the Run as Bets Turn Positive for First Time Since... By Investing.com - Jul 23, 2021 11

U.S. stock markets hit new highs, Treasury yields up as choppy week... By Reuters - Jul 23, 2021 3

Dow Closes Above 35,000 for First Time as Strong Earnings Stoke... By Investing.com - Jul 23, 2021 20

Wall Street Opens Higher as Social Media Lifts Market; Dow Tops 35k By Investing.com - Jul 23, 2021 8

FAAMG Earnings Preview: 5 Tech Giants Set To Report Explosive Q2... By Jesse Cohen/Investing.com - Jul 21, 2021 8

Opening Bell: U.S. Futures Rally On Earnings For Second Day; Gold... By Pinchas Cohen/Investing.com - Jul 21, 2021 6

August Fed Tightening Announcement May Not Be Bearish For Commodities By Andy Hecht - Jul 23, 2021 8

Disney Share Pullback, Recent Transformation Offer Favorable Buying... By Haris Anwar/Investing.com - Jul 23, 2021 3

Intel Q2 Earnings Preview: Sales, Margins Under Pressure As Market... By Haris Anwar/Investing.com - Jul 22, 2021 3

Central Banks Rates

	Central Banks		Interest Rates	Next Meeting
		FED	0.00%-0.25%	Jul 28, 2021
		ECB	0.00%	Jul 22, 2021
		BOE	0.10%	Aug 05, 2021
		SNB	-0.75%	Sep 23, 2021
		RBA	0.10%	Aug 03, 2021
		BOC	0.25%	Sep 08, 2021
		RBNZ	0.25%	Aug 18, 2021
		BOJ	-0.10%	Sep 21, 2021
		CBR	6.50%	Jul 23, 2021
		RBI	4.00%	Aug 06, 2021
		PBOC	3.85%
		BCB	4.25%	Aug 04, 2021