Gold prices have been forced to find any rise tendency since they reached the highest level of all time in August. The price finds a strong resistance around $ 1,750 per ounce. Nevertheless, a market analyst said he expects the feeling of fall in the precious metals market to change again.
Jesse Felder addressed gold investors: Now it’s not time to throw towels!
Felder Report founder Jesse Felder says that even if gold prices have fallen hard from the August summits, it is not time to throw towels to investors. June gold futures in June was last traded for $ 1,724,40 per ounce. Jesse Felder described the price movement in the last seven months as a healthy correction. The biggest threat to the gold market continues to be rising bond returns that have been close to the highest levels for more than a year.
The return of 10 -year bonds was last traded at 1.6 %. However, Jesse Felder said that despite the rise of nominal returns, gold investors should pay attention to real returns, including rising inflation. Jesse Felder added that he expects the bond market to be sold and that the increase in returns would be close to the summit. Jesse Felder adds the following to the subject:
The increase in rates has already been dramatic and there are reasons to believe that it may be closer to the end. At the same time, inflation seems to be on the brink of recovery once again. So there will be real rates.
Jesse Felder: The second important rise factor for gold prices is the rising government debt!
In a report on Wednesday, the former Bear Sterns analyst said that Gold will probably continue the rise trend. The question of how long the 10 -year returns will rise remained in the minds of many investors. Some research companies, the US economy to see a solid recovery from the COVID-19 epidemic expectations continue to increase, while interest rates may rise to 2.5 %, he said. Jesse Felder said that the second important rise factor for gold was a rising government debt. Jesse Felder adds the following to the subject:
At the moment, the CBO estimates that the 2021 deficit will be slightly less 2.3 trillion dollars than last year’s total. However, this does not include a $ 1.9 trillion incentive package recently spent by the congress. It also does not include a new infrastructure of $ 3 trillion. The package currently planned by this management…
Jesse Felder: Gold’s benefit as inflation protection and insurance was not stained at all
Jesse Felder said the gaps were not close to the summit. It seems that there is a paradigm change in attitudes towards open expenditures. Jesse Felder added that the gold market is not priced in all new expenses. Jesse Felder adds the following to the subject:
Neither Gold’s inflation protection nor as a fiat currency insurance was not actually stained.
