2024-06-10 11:34:45 ET
Summary
- Gold recently broke out to new all-time highs but the uptrend was broken after the strong May labor report, as the expectations of a pre-mature Fed cut evaporated.
- Higher interest rates over the near term, as the market prices a "higher-for-longer" policy, are likely to cause the price of Gold to continue to fall over the near term.
- Gold's price movements seem to be following Bitcoin, indicating a speculative environment and lack of fundamental reasons for Gold's breakout.
- Yet, some exposure to Gold is still recommended due to the escalating geopolitical situation.
The Gold Breakout
The price of gold started a major move higher on March 1st, spiking to a new all-time high near the $2500/level on May 20....
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Gold Gets Crushed By Rising Rates, Trades Like A Bitcoin