Golden Bounce Fades

Jordan Eliseo

The Perth Mint

This week we got another reminder that in the post GFC world of QE, ZIRP, NIRP and negative bond yields, “talking is tightening”. That is the opinion of Fed uber-dove Narayana Kocherlakota, who this week, in response to the broad rolling over in US macro data stated that “there is even a theoretical argument to be made for making asset purchase now if the economy faltered ”. Kocherlakota also stated that the very debate about hiking interest rates was acting as a drag on the US economy. Despite renewed dovishness from some sections of the Fed, and the incredibly bad good friday non-farm payroll report, the much expected bounce in gold prices proved short-lived. After trading up toward the USD $1215oz mark, mostly on the back of short covering, gold has pulled back. Renewed dollar strength has crimped demand for the precious metal, with the SGE now trading at a discount to London. Despite the pullback, there are some more optimistic forecasts starting to emerge Full details here (VIEW LINK)

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Gold bull since early 2000. Have spent +20yrs working in investment analytics, research & portfolio construction. Author of two books on investing in gold and the causes of the GFC. Lover of markets, competition & technology

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