Page 28 - Bullion World Issue 11 March 2022_Neat

Bullion World | Issue 11 | March 2022

Market, continue to see and think the wave of inflation as having an expiry date. It is certainly truth that we can no
longer talk about trans during inflation. But if we look at the five and ten years break events, it is very clear that
the market expects a return from lower more normal levels in the longer term, and think this both have positive
and negative implications for gold.

*Based on CME Group’s Fed Funds futures prices as of 23rd February 2022
Source: Metals Focus, Bloomberg

So what US policy rate, so what I have done here is plugged in public policy rate that the CME support fed funds,
futures suggest for the next five years, if we use this as gauge of market expectations. It is an aggressive hiking
cycle. Mostly centered over the next six to 12 months. In fact, with six hikes with this year alone, followed by
plateau and reversal of policy, with cutscene, as early as later 2024.

Source: Bloomberg

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