Gold: The BIG Comeback

 In the past few months the gold price has been looking for direction, now it has made a decision: it is going up again. US inflation is likely to play an important role here.

Since July there has been a stalemate on the market - the high inflation actually spoke in favor of a rising gold price, but the prospect of an imminent tightening of monetary policy on the other hand - rising interest rates increase the opportunity costs for interest-free gold.

Now the tug-of-war has been decided in favor of a rising gold price. That is quite understandable. Because the FED is rather hesitant to tighten its monetary policy, with a cautious reduction of the purchase volume of fixed-income securities by only 15 billion US dollars per month. The tapering could last until the middle of next year, and interest rate hikes will only be on the agenda after that.

In the meantime, inflation is galloping away in the USA, with a price increase rate of 6.2 percent in October, the highest level for more than 30 years.

Exploding inflation and hesitant monetary policy - that is the mix that could push the gold price to new record levels.