Gold price framework update – the new cycle accelerates

GoldMoney/Alasdair Macleod

“We think this is still the early stage of a new gold cycle that started in 2016 rather than the end of it. Our gold price framework has predicted the recent moves very well (see Exhibit 2). In our view, gold prices overshot in summer and prices were no longer supported by the underlying fundamental drivers. This has now corrected. Given our views on where the main drivers in our model are heading, we think the risk to gold prices remains strongly skewed to the upside. While we think some downside risk remains, any large retracement will be short lived in our view.”

USAGOLD note:  Macleod updates his 2015 call for a resumption of gold’s secular bull market. He foresees a $2600 to $3100 price at the top of this cycle – a “scenario” that does not include “a sharp pick-up of inflation.”


Repost from 1-31-2021

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