The logic of hiking commodities and gold price: Double deficits continue, inflation is looming, US dollar keeps weak, Treasury bill/bond prices are dropping, and FEB is anticipated to continue raising primary interest. If you are a prudent wise investor, what is the best way to struggle out this situation? For domestic investors: Moving out Treasury bill/bond and buy commodities. For foreign investors: Selling Treasury bill/bond and buy assets in strong currency counties. If you were the head of some country central bank: Unloading Treasury bill/bond and buy gold!
