New gold bull market or bear market rally?

Tuesday, 18 May 2021

Gold has rebounded strongly in recent weeks as the generalised inflation panic has built up a head of steam. It has been particularly helped by the peculiar combination of high US inflation and a weakening DXY, trigger by the recent US jobs report which hinted at stagflation.

This has led to a slump in real interest rates and driven gold back up:

Goldman has more on the dynamic:

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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.