Jordan Roy-Byrne: Peak in Inflation Will be Bullish for Gold & Gold Stocks
The Daily Gold, Released on 4/24/22
It is counterintuitive but since 2016, Gold & Silver have performed well after peaks in inflation and poorly once inflation became entrenched. Much of the reason is due to real interest rates, which drive precious metals. Peaks in real interest rates have coincided with peaks in inflation. Gold & Silver are setting up to bottom when the rate of inflation peaks and commodity prices peak. If this comes to pass, precious metals will rise as the Fed stops hiking rates and accelerate to the upside when the Fed signals rate cuts are ahead. When the market sniffs the Fed will stop hiking, real interest rates will rollover which will benefit precious metals.
Jordan Roy-Byrne, CMT is a Chartered Market Technician and member of the Market Technicians Association.. He is the publisher and editor of TheDailyGold Premium, a publication which emphasizes market timing and stock selection for the sophisticated investor, as well as TheDailyGold Global, an add-on service for subscribers which covers global capital markets.
Jordan Roy-Byrne: Peak in Inflation Will be Bullish for Gold & Gold Stocks added by Herman James on 04/22/2022View all posts by Herman James ?+'