The gold rally may have legs as the Federal Reserve (Fed) could soon become more tolerant of above-target inflation. According to Wall Street Journal (WSJ), the US central bank is planning to abandon the long-followed strategy of pre-emptive interest rate hikes to head off higher inflation and take a more relaxed view by allowing periods in which price pressures run slightly above the 2% inflation target, Gold, a perceived inflation hedge, rose to a record high of $1,988 early Monday. The yellow metal has rallied by 30% this year and is currently up over 35% from lows near $1,450 observed during March. The Fed has poured in an unprecedented amount of liquidity into the system over the past four months to help the economy absorb shocks arising from the coronavirus outbreak and stabilize the domestic and international credit markets. Most analysts expect the massive stimulus to fuel inflation over the long run. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next BTC/USD Price Analysis: Bulls defy Sunday sell-off to regain 11,000 FX Street 3 years The gold rally may have legs as the Federal Reserve (Fed) could soon become more tolerant of above-target inflation. According to Wall Street Journal (WSJ), the US central bank is planning to abandon the long-followed strategy of pre-emptive interest rate hikes to head off higher inflation and take a more relaxed view by allowing periods in which price pressures run slightly above the 2% inflation target, Gold, a perceived inflation hedge, rose to a record high of $1,988 early Monday. The yellow metal has rallied by 30% this year and is currently up over 35% from lows near $1,450 observed during… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
