Commodities / Gold and Silver 2018
May 22, 2018 – 08:42 PM GMT
Tuesday May 22, 2018 10:48
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
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Gold dived below $1,300 last week, to many analysts’ surprise.
They are panicking right now. But you do not have to. Let’s read our article and find out what is happening in the gold market!
Didn’t we tell you?
We don’t want to be like these annoying guys who always utter “didn’t we tell you?”. But, well, this is our job after all: to provide you with the finest fundamental outlook of the precious metal market. And here is what we wrote in Gold News Monitor on May the 15th:
The weak rebound in gold prices last week suggests that gold has some work to do on the downside. Similarly, the fundamental outlook is rather bearish in the medium term, at least more bearish than a few weeks ago. We mean here that the stock market correction has not turned into a crisis and the risk appetite has increased.
The worries about trade wars have diminished, while inflation remains in check. If interest rates continue their upward move and their correlation with gold returns, the yellow metal will get into hot water.
Chart 1: Gold prices (London P.M. Fix) over the last twelve months.
You may call it a coincidence, but I would say that it was a comeback of a key gold correlation, of which we had warned our Readers.