Gold has been getting hammered for months now with what seems to be no end.

The further yields rise on bonds the more speculation on inflation we see.

Usually this would mean that we would see gold track similarly to the money supply, they have generally moved in similar directions in the past as a means of hedging against inflation, known as the fools gold way.

At this stage forecasts are for gold to increase in demand as the year goes by, an overheating economy with another stimulus package on the way is potentially going to drive the value of gold, silver and copper higher, especially on the indistrial uses as more and more industrial businesses require resources.

There are some short side risks to consider:

1. yields wont help gold until the Fed tapers

2. increase economic optimism is usually bad for gold

Now in this analysis I am relying more so on technicals, with the estiimation that before the next move down on gold there will be bounce at the $1670 per ounce point.

GOLD XAUUSD - Long

Mar 08 2021

2