- There are seven inputs to our Gold True Fundamentals Model, one of which is an indicator of US credit spreads.
- When economic confidence is high or in a rising trend, credit spreads will be narrow or in a narrowing trend.
- We doubt that confidence will hover at a high level for a lengthy period this time around. Instead, we expect that there will be an economic confidence reversal within the next few months.
- However, there is no need to forecast the reversal, because credit spreads should provide us with a timely warning.
For further details see:
The Most Important Gold Fundamental Right Now