Disappointing economic numbers raised hopes of rapid and deeper cuts by the Fed, while the dollar continued its losing streak.
Gold and the greenback often move in opposite directions and lower interest rates also bolsters gold’s prospects because the metal offers no yield and investors have to rely on price gains for returns.
All eyes are now on Fed chair Powell’s speech in Jackson Hole this week, although judging by this analysis, Jackson Hole is usually not a gold-friendly event.
Global average daily trading volumes in gold exceeds $160 billion, more than T-bills, so days like Friday gives everyone a chance to shine.
The champagne corks must be popping in Perth, Denver, Vancouver and Toronto, right? Mumm maybe. Dom, not likely.
Because as in so many markets, grass roots operations and financial markets have lost touch altogether.
Just under $1.1 billion disappeared from gold exploration budgets last year. 36% fewer…
