Gold and XAU Mining Index (Daily and Hourly chart) signal the pull back from last August's high has ended, up trend will resume and will likely take out last year's high. Inflation is expected to break out from the side way consolidation towards year end, any increase in interest rate by the Federal Reserves will stifle economic growth but will not stop surging inflation as it is caused by strong Chinese demand for commodities after resurrecting from the Corona Virus crisis as well as caused by global currency dilution, astronomical among of fiat paper money has been streaming out the printer around the world chasing finite natural resources among strong demands for natural resources from growing number of industries.
Rising interest rate is only effective in curbing domestic inflation caused by an overheated economy, but since the recovery from the 2008 mini-economic-depression there had been no upward wage pressure while economic growth and new jobs have peaked. Increasing interest rate by the Fed will likely plunge the economy into another economic depression amid the Pandemic with the mutation of COVID into more contagious variants.
Click for enlarged view
XAU Mining Index
Global mining stock Index