Gold prices have been on a steep downward trend for the past 6 months despite REAL interest rates still being negative. Gold has served to preserve purchasing power in the past during times of currency devaluation (due to money printing) and inflation (anticipated when the economy opens up and money velocity returns to normal, more money chasing after the same goods and services).
After this period of shakeout, where the bonds sold off, 10 Y yields hit a recent high at 1.5%, and a tech cool down that was overdue, we're set to continue in the direction that makes sense. More stimulus is incoming, weakening the dollar, keeping yields low, pumping stocks up and making gold an attractive inflation hedge as the world opens up for business again in the coming months.
Note the RSI divergence, the oversold technicals on sound long fundamentals that support gold higher from here. I would recommend waiting for a clear breakout before taking a position.
One can't predict where the gold price will settle, but we know at these prices gold miners are incredibly profitable.
I am long GLD, GOLD / ABX.TO, KL / KL.TO
Good luck!
After this period of shakeout, where the bonds sold off, 10 Y yields hit a recent high at 1.5%, and a tech cool down that was overdue, we're set to continue in the direction that makes sense. More stimulus is incoming, weakening the dollar, keeping yields low, pumping stocks up and making gold an attractive inflation hedge as the world opens up for business again in the coming months.
Note the RSI divergence, the oversold technicals on sound long fundamentals that support gold higher from here. I would recommend waiting for a clear breakout before taking a position.
One can't predict where the gold price will settle, but we know at these prices gold miners are incredibly profitable.
I am long GLD, GOLD / ABX.TO, KL / KL.TO
Good luck!