Yesterday’s lower liquidity via bank holidays throughout many global nations did not leave gold unscathed with markets adding to a fading gold price. Spot gold pierced below support targets last seen in mid-February 2022 and looks to test subsequent levels as fundamentals look to align with bullion bears.
5-year inflation forecasts shown in the graphic below show a significant decline thus lessening gold’s attractiveness as an inflation hedge. Relatively subdued crude oil prices are adding to the reduced forecasts – crude oil often acts as a barometer for inflationary pressure (positive relationship).
