Gold serves as a renowned inflation hedge due to its intrinsic properties and historical performance during periods of rising prices. Gold operates as an inflation hedge as gold possesses inherent value that transcends currencies and economic fluctuations. Its scarcity, durability, and desirability make it a sought-after asset, particularly during times of economic uncertainty or currency devaluation. Gold tends to have an inverse relationship with fiat currencies, particularly during periods of high inflation. As the value of paper money declines due to inflation, the relative value of gold often increases, making it an attractive hedge against purchasing power erosion.

Gold is also trying to break higher at the moment and a more dovish Fed could send it soaring out of a potential flag pattern forming on the daily chart. Also, note the seasonal bias for gold longs out of the Federal Reserve meeting as highlighted by Seasonax’s event tracker! This is one event not to miss!

Check out the video below for more details!

The major trade risk here is that previous seasonal trends do not necessarily repeat themselves again each year.

Remember, don’t just trade it Seasonax It!