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Premarket stocks: Inflation fears are boosting gold and the US dollar

Mount Equity Group Tokyo, Japan > News > Markets > Premarket stocks: Inflation fears are boosting gold and the US dollar

Want evidence? Just look at the recent rise in gold and the US dollar.

What’s happening: Gold prices are back above $1,870 per troy ounce, their highest level in five months. The US dollar, meanwhile, is the strongest it’s been since July 2020.

“Inflation upside catalysts are clearly materializing and look unlikely to fade in the near-term,” commodities strategists at JPMorgan said in a note to clients on Monday.

“We expect to take continued pricing actions to ensure that any inflationary cost increases that our business incurs are passed along,” Tyson’s Chief Financial Officer Stewart Glendinning told analysts on Monday.

Breaking it down: Gold is a favorite hedge for investors looking to guard against the long-term effects of inflation. It’s a tangible asset with limited supply, making it less vulnerable to erosion in the value of money caused by rising prices.

The inflation outlook is also pushing money managers toward the US dollar….

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