Summary
- Gold is on its third attempt at a major breakout.
- It's been clear over the last ~9 months that enemy #1 for GLD/gold has been the USD.
- What determines gold's value is monetary inflation, and gold is still ~15% below fair value today and will likely greatly exceed fair value.
- Gold performs best during periods of high inflation and negative real yields.
- Other bullish fundamentals supporting gold are the snowball effect because of rising interest rates, a peak in worldwide gold production, and consumer and central bank demand.
For further details see:
Gold: Third Time's The Charm