The real reason why gold is surging and why it won’t stop

CCNMarkets/Sam Bourghi

“Geopolitics, monetary policy and a slowing economy have all been cited as primary factors behind gold’s bullish breakout in 2019. While these catalysts cannot be discounted, the real reason gold is surging and why it will continue to do so is the trend in real interest rates relative to inflation.”

USAGOLD note:  For those who like to track this sort of thing, we offer a live chart on the real rate of return on both gold and the dollar at our Gold Trends and Indicators page. . . Please scroll toward the bottom of the page.

Sources: Bureau of Labor Statistics, Federal Reserve Board of Governors, St. Louis Federal Reserve [FRED]

Repost from 10-25-2019