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U.S. Global Investors/Frank Holmes/6-26-2020
“A ‘perfect storm’ of surging government debt levels, plunging real bond yields, rising coronavirus cases and deteriorating economic forecasts pushed the price of gold to an eight-year high this week, and some analysts now project the metal to top its all-time high within the next 12 months.”
USAGOLD note: Holmes finds himself in the company of hundreds of analysts who have predicted would reach all-time highs in the near future. He says gold trades inversely to bond yields – as both bonds and gold are sought as safe havens in this presently disinflationary environment.
Sources: Federal Reserve Board of Governors, ICE Benchmark Administration, St. Louis Federal Reserv [FRED]