Gold has long been a go-to for those looking to hedge against inflation or simply sleep better when markets get shaky. But here’s the question: what happens when interest rates, especially real, inflation-adjusted ones start heading north?
Rate cuts usually get investors excited. Lower interest rates, easier credit, and more breathing room for consumers and businesses alike. But what if inflation’s still hanging around, not falling, not rising dramatically either, just... maybe stubborn?
Gold doesn’t pay you anything to hold it. No interest, no dividends, just a shiny metal sitting in a vault. And yet, in today’s uncertain world, it’s becoming increasingly valuable. Why? Because when returns on cash and bonds can’t keep up with inflation, investors start to care less about yield and more about safety and security.
The financial landscape in Thailand is growing rapidly, with a number of young and experienced traders looking beyond their local options to access gold trading and forex trading markets.
This week felt like a tug of war between optimism and caution.
In the US, retail sales surprised to the upside and consumer sentiment held up, giving bulls something to cheer about. But June’s inflation numbers told a different story. Core CPI ticked up to 2.9% YoY, keeping the Fed firmly in wait-and-see mode.
When markets start acting up or the headlines go full “crisis mode,” you’ll often hear investors shifting into so-called safe-haven assets. Gold, yen, and the dollar. But what exactly makes them “safe,” and why do people run to them when everything else feels like it’s falling apart?