I've observed a truly interesting phenomenon: the S&P 500 stocks have surged to a new high of 7,400 points, but gold (XAUUSD) remains steady at $4,726, refusing to follow upward. This is called the "Great Divergence." In my view, it signals that the market is changing its outlook. Large investors know that inflation will stay high for a long time. Gold has become the best asset to hedge against currency devaluation right now.



Tonight's CPI news (7:30 PM), expected at 3.7%, will be the deciding factor. If it comes out higher, gold could spike past $4,800 within 48 hours. But if it's lower, wait for a pullback before entering.

Another thing to watch is the change of Fed Chair this Friday. The uncertainty around this can serve as a catalyst for gold. Investment must be individual; avoid over-leverage. Don't miss out!
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments