- Gold has declined due to the rise in real interest rates associated with the ongoing crash in Treasury bonds.
- As inflationary forces continue to mount, gold and Treasuries will continue to decouple and may soon go in opposite directions.
- Since CPI overweights urban consumption and does not account for key factors, "CPI inflation" will likely continue to rise regardless of Federal Reserve policy.
- A crash in stocks and bonds may fuel a rally in gold as money flows out of financial assets into real assets and goods.
- With gold's downside risk limited by dovish monetary policy, it may be a good time to consider accumulating gold or gold miners.
For further details see:
Everything You Need To Know About Gold In 2021