Gold continues to lose ground as ceasefire talks resume in Istanbul
‘The stars are aligning for gold,’ says Rickards
(USAGOLD – 3/29/2022) – Gold continued to lose ground in early trading following yesterday’s stiff, nearly $35 selloff as ongoing talks in Istanbul between Ukraine and Russia raised hopes of a ceasefire. It is down another $12 this morning at $1912. Silver is down 34¢ at $24.57. As we near Thursday’s all-important PCE Price Index release, inflation continues to be the primary concern in financial markets despite media focus on the Ukraine war. Expectations are that it will post a 0.8% increase for February – well over January’s 0.6% increase and approaching double-digits annualized. The dollar and bond market are both sharply lower this morning.
“The stars are aligning for gold,” writes James Rickards in a recent analysis at Daily Reckoning. “A combination of geopolitical tumult, supply chain problems and inflation all point to much higher gold prices. If you believe that the war in Ukraine will end soon, that global supply chains will heal quickly and that inflation is transitory, then you’re probably in for a rude awakening. In fact, none of those things is likely. Even if the shooting stops in Ukraine soon, something that is not at all assured, the geopolitical consequences will dominate events for years or decades.”
Cartoon courtesy of MichaelPRamirez.com