Gold breaking out

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Gold is breaking out to record highs in Australian dollars:

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Macquarie sees near term weakness:

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Gold is surging higher again, and the reason is familiar – bad US economic data stymieing the Fed’s desire to tighten monetary policy. We see gold’s gains as temporary as we don’t believe the US economy is going into a recession and the Fed will achieve a tightening cycle. But it underpins our bullish medium-term view, as an increasingly cautious Fed means lower real rates for longer.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.