Unraveling the forces that stimulate gold prices: a bullish future ahead
If history is something to pass by, earlier Golden SuperCycles suggest that this is just the start of a much bigger step forward.
At the moment the precious metal is running through “a multitude of bullish stailwind”, including; President Trump’s rate, who threatens to ignite a new round of global trade wars.
Historically, there has always been a positive correlation between rates and gold prices that are higher. The longer rates continue, the more this will disrupt global trade and inflation.
Another dominant macro factor is that central banks all over the world continue to collect gold in a record pace while they aggressively diversify the US dollar.
Moreover, the ongoing instability in the Chinese economy is also high on the list, just like the Beijing authorities to launch a new project with which Chinese insurance companies can invest up to 1% of their assets in gold.
And last but certainly not least – the strong correlation between US government debt and gold prices.
In a comment for customers, analysts of GSC Commodity Intelligence wrote: “Partially evidence shows that the American national debt has risen from 5 trillion to 36 trillion dollars in the period – the gold prices have risen by almost 9 times. Things really become interesting. figure reaches ”.
All this tells us one thing. From here, gold prices only go in one direction – and that is up!