The price of the world’s favorite precious metal remains near its upper range of the past three years, but for gold bulls this is disappointing. The surge of inflation in the wake of the pandemic should have by now pushed the price much higher than the current $1962 per ounce, its more zealous supporters complain. But while inflation is, or at least, can be a factor in gold’s price, real (inflation-adjusted) interest rates and the US dollar tend to dominate pricing. By that reasoning, the spike in real rates in recent years explains a lot. No wonder, then, that CapitalSpectator.com’s “fair value” gold model, which uses the greenback and real rates, still advises that the precious metal’s valuation is lofty.
Daily Archives: July 25, 2023
Macro Briefing: 25 July 2023
* Heatwaves around the world likely triggered by climate change, study finds
* Decades of rising global debt levels starts to bite as borrowing costs increase
* US economic boom possible due to productivity boost: head of Yardeni Research
* When will the drop in US personal savings threaten the expansion?
* Federal Reserve expected to lift interest rates tomorrow (Wednesday, July 26)
* Chicago Fed Nat’l Activity Index: US growth remains below trend in June
* US economic momentum slows in July via PMI survey data:
