Update and 2020 outlook for precious metals
“Despite a resiliently strong & compressed US$ and a lack of (sustained) US equity volatility, Gold made a statement breakout in summer 2019. It became sensitive to geopolitical and trade risk and the repricing was (smartly) aligned with a shift in Fed policy. There are technical similarities between the repricing higher in 2019 (into a bull market) versus repricing in 2013 (into a bear market), which should be respected.”
USAGOLD note: We made reference to this Scotia Bank report in yesterday’s DMR. We repost it here for those who might have missed it. The very fact that gold has begun to respond so forcefully to periods of market duress is a matter of interest to Scotia Bank, one of the principal traders of the precious metal in international markets.
Repost from 1-15-2020