Despite no notable move in ‘real rates’, gold performed a decent rally alongside silver from a key support level to reaffirm our view that bounce is due.
In today’s video we update analysis from yesterday’s silver video then take a fresh look at gold prices. We suspect gold has now caught a bid for at least two reasons; short covering and Powell’s shift to describe inflation as “entrenched”. Should that narrative continue to be pushed then we suspect that gold’s rally could continue to prosper.
Related analysis:
Silver bears are looking tired after a 16% decline
Inflation now deemed to be ‘entrenched’, not transitory
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