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What’s our take on Gold

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

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What’s our take on Gold

Hi James, I am really enjoying the new structure of the reports. There is much commentary about the positive outlook for gold into the future however it is struggling currently. I am keen to understand what you see as the catalysts for driving the price upwards. Regards Jeff

Answer

Hi Jeff,

We are looking for gold stocks to rally into Christmas but the momentum is concerning as is our contradictory bullish outlook for bond yields hence we have no interest in increasing our position size at current levels. The bullish thesis overall for gold is negative real rates which is when inflation runs above interest rates, Gold (in theory at least) should act as a store of value.

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Gold Spot ($US/oz)
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