Precious metals have a strong inverse correlation to bond yields & the $US hence last week’s reversal helped gold rally over 5% from its August low, a good recovery but it’s still well below the ~$US1900 level tested in June. We see further upside in the sector but remain mindful of our medium-term bullish outlook for bond yields which by definition will create a major headwind for gold, silver et al.
MM remains bullish gold, at least short-term
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