The gold bull market is just getting started
Seeking Alpha/Christopher Yates/4-13-2023
“Clearly, real yields look to be in the process of peaking for this cycle, meaning we are likely in the early innings of a renewed bull market in precious metals. But, it may be a little too early to suggest they will roll over just yet, particularly if the Fed has one or two surprise hikes left in them as economic and inflation resilience remains for now. However, as growth is likely to slow materially in the second half of the year, there will be a time where nominal yields fall faster than inflation expectations, and thus, real yields roll over hard and fast. One would expect such an environment to be accompanied by a more accommodative Federal Reserve, thus ultimately setting the stage for a fundamentals-backed move higher in precious metals.”
USAGOLD note: A well-constructed argument calling for a bull market in gold based on an erosion in the real rate of return……