What’s going on in gold
Gold is at the peak of the day, rising from $ 11 to $ 1,713 as the US dollar weakens at all levels. The 0.6% increase stimulates gold to the highest since Friday, but overall, the consolation around $ 1,700 continues.
The graph appears to be a bullish flag, but the idea here is to pause in both directions.
Gold fundamentals are excellent, but I’m worried about a new downdraft if risky assets suffer. Powell is a big risk today. Negative rates have been discussed and other Fed members have tried to suppress this, but I fear that the market has foreseen its chance and that Powell will have to suppress it.
The only way not to end up with more deflation is because the location
global supply chains, stagnant productivity and higher government
presence in the economy will affect the overall supply curve. In
In fact, if you have a three to five year vision, a strong case can be made
that stagflation will emerge as a new profane theme once demand
conditions are stabilizing. Either way, gold comes out winning and is my
highest conviction, if for no other reason than the growth of
constant at around 1 percent per year, while the production of
the money supply is currently 30%.
He joins Druckermiller and Tudor Jones among others who strike the drum for gold.