Gold’s all-time-high, in terms of USD, was set a little more than two years ago. At the time the liquidity cannons were at full blast in the United States and gold prices put in an astounding 44% run from the March 2020 low up to high set in August of that year.
What happened after, however, showed a far different tone. Gold prices started what initially looked like a pullback. The big hammer for bears showed up about a week after the US Presidential election, when news of working vaccines started to make their way through markets. This brought the implication that pandemic-era stimulus may soon go away and that helped to produce a continued pullback in gold prices as the ‘reflation trade’ started to take-over in early 2021.
