NEWS | 12 minutes ago | By Omkar Godbole
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The US 30-year breakeven inflation rate – a gauge of the financial market’s expectations for long-term price pressures – rose to 2% on Monday to hit the highest level in nearly 19 months, having bottomed out below 1% in March.
The recent rise in inflation expectations could be associated with expectations for additional US fiscal stimulus and hopes of swift global economic recovery on potential coronavirus vaccines and is giving a lift to gold, a traditional inflation hedge.
The yellow metal is currently trading at $1,863 per ounce, having hit a low of $1,764 on Nov. 30. Prices reached a record high of $2,075 in August.
Source from https://www.fxstreet.com/news/market-implied-us-inflation-expectations-rise-to-19-month-high-202012080159