GLDI - Gold Market Commentary: Inflation Risks Seep Back In

2024-02-08 03:00:00 ET

Summary

• Gold failed to power higher in January, despite seasonal tailwinds, after breaching record highs at the end of 2023.
• Global gold ETF outflows and a reduction in speculative positioning were major contributors to gold’s January performance.
• Long-term Treasuries and the US dollar, on the back of strong upside US economic surprises, were also headwinds.
• Lower rates eventually but data on the economy too strong. Recession risks remain but are lower.
• The hibernating inflation bear just got an unwelcome poke from Red Sea tensions and US data.

Gold gives back gains

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