What really drives the price of gold?
“Rather than ‘struggling to compete’ gold was galloping ahead in the face of ever higher interest rates and increasing lack of demand for higher-yielding investments. The higher rates were a reflection of lower prices for bonds and particularly U.S. Treasury securities. The 10-year U.S. Treasury bond yield exceeded 15 percent. Which makes you sort of wonder when you read something like this: ‘Higher rates boost the value of the dollar by making U.S. assets more attractive to investors seeking yield.’”
MK note: The time to buy gold is when everything appears quiet and there doesn’t seem to be much going on.