Fed's unanimous hike stirs debate over how long high inflation persists
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UBS's view that further hikes remain likely this year points to continued support for the US dollar and real yields, a combination that raises the opportunity cost of holding gold and could see some of August's ETF inflows unwind in the near term. Longer term, the bank argues gol
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4 itemsUBS sees market pricing of two Fed hikes as too aggressive ... get gold!
UBS's assertion that the market pricing of two Federal Reserve rate hikes by April 2024 is overly aggressive aligns with a growing narrative that suggests disinflationary pressures are set to reemerge, heavily influencing both rates and gold. Per the full note [source], UBS anticipates that tariff disinflation will reduce inflation trends, thereby dampening the Fed's hawkish stance and resulting in lower short to medium-term yields. This backdrop positions gold favorably, especially as UBS indicates a lack of urgency for Fed rate hikes, forecasting an extended hold before potential cuts in 2027. As institutional positions adjust to this narrative, the reaction in the FX markets will be crucial, particularly against pairs sensitive to U.S. interest rate expectations.
Fed's Kashkari says inflation is still too high, pencils in one more hike this year
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Economic and event calendar in Asia, Monday, November 16, 2026. BoJ, China data, Japan GDP.