US inflation expectations accelerate after Powell's speech
The US inflation expectations have accelerated following the Federal Reserve chairman Jerome Powell's historic Jackson Hole speech on inflation.
The 5-Year, 5-Year forward inflation expectation rate rose from 1.81% to 1.86% on Friday to hit the highest level since 2019.
On Thursday, Powell introduced inflation targeting. Under the new strategy, the central bank would allow inflation to rise above the 2% target for some time before raising interest rates.
The uptick in inflation expectations could add to the bullish tone around gold. The yellow metal reached a record high of $2,075 per ounce on Aug. 3 and has gained over 25% this year.
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