Are gold prices heading for another breakout past $2,000/oz?
“People are interested in gold because they are worried about future purchasing power. The market is still considering whether the US Federal Reserve (Fed) will be able to raise interest rates as much as seven times this year and whether or not inflation will materially weaken. In my view, this is why gold hasn’t broken out properly yet — the market is focused on relatively hawkish observations.”
USAGOLD note: Naylor-Leyland lays out why investors and central banks own gold. It is not simply because it shines and is beautiful to look at. We referenced this report in Tuesday’s Daily Market Report and repost it here for those who may have missed it. Many of our readers will be surprised by the graph below. The U.S. dollar has lost 8% of its purchasing power over the past year.