Gold crashed as the U.S. expects more inflation. Another opportunity to buy?

The price of Gold fell last week as the Mays Consumer Price Index (CPI) report showed inflation hitting a 13-year high. The Federal Reserve Chair Jerome Powell acknowledged the inflation could run higher than planned in the short term. He further clarified that “longer-term inflation expectations are anchored at a place that is consistent with our goal.”

The market gave a ‘vote of confidence,’ causing the U.S. dollar to rise against other major global currencies.

Gold suffered a huge crash on Wednesday, losing over 1,000 points in total from the week before. The price of gold was trading at $1858 per ounce in the early trading hours of Wednesday before the FOMC meeting was held.

The price of gold fell from 1858 to 1810 after the FOMC meeting and further dropped to 1764 on Friday before the market closed. The crash on Gold erased all bullish movement that was done in May, pushing price back to May low.

This might be another opportunity to go long on Gold after the price failed to break above 1910, May high.

A massive discount has just been given on Gold as the Feds still expect higher inflation in the short term. Investors are looking to get back-in into the Gold bullish run as price returns to 1775 (May lowest price).

We all know Gold is used to hedge against inflation and this could be the discount needed to push the price of the precious metal back to its all time high of $2000 per ounce.