Reported 5 months ago
The article discusses the recent rally in the commodity sector, with assets like Gold reaching all-time highs, and its implications for inflation. HSBC Chief Multi-Asset Strategist Max Kettner explains that the commodity rally has not reignited significant inflationary concerns. He attributes the rally to central bank buying and less diversification in assets like bonds due to the Fed's rate hike cycle. Kettner also mentions that while a rise in oil and natural gas prices simultaneously could pose a problem for markets, current energy prices in the US remain relatively low, indicating that hitting the 2% inflation target is not imminent.
Source: YAHOO