Gold heads for new highs
We do not dwell on the emotional attractions of gold. Our bullishness is derived from the observable evidence
Gold continues its move higher today, less than 1% away from the record high of 2011.
Financial repression in bond markets has driven real yields down markedly this year. Any increase in inflation expectations from here or a crisis in fiat currency could lead to explosive upside.
We do not dwell on the emotional attractions of gold. Our bullishness is derived from the observable evidence of a strong gold trend, a weakening US Dollar, low real yields and improvement in emerging market equity performance. August is also a seasonally good time for the precious metal.