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According to the St. Louis Federal Reserve data, the US inflation expectations as measured by the 10-year breakeven rate jumped to 2.21% on Friday to hit the highest level since August 2014, strengthening the bullish case for the store of value assets such as gold. 

Inflation expectations clocked a low of 0.5% in March 2020, as financial markets crashed on fears of a coronavirus-induced recession and have been rising ever since. 

The ascent has been particularly sharp over the past few weeks, courtesy of oil price rally and strengthening expectations for aggressive fiscal spending under Joe Biden’s presidency.