Chart of the Week: Events Causing Gold ($/Spot) Price Increases

Chart of the Week | October 25, 2021
Macro Insights

Events Causing Gold ($/Spot) Price Increases

  • Gold prices remain highly correlated by structural events and investor sentiment (gold viewed as a haven asset).
  • Rising negative yields (the lender paying the borrower for loaning the borrower money) skyrocketed since 2018 through 2020. However, since 2021 negative yielding debt has contracted as gold price increases cooled off.
  • With rising supply-side inflation looming coupled with structurally higher unemployment, or stagflation, does Gold remain at the forefront of another bullish movement? Our most recent post, “Was Our Stagflation Forecast Correct? One-Year Update”, discusses this dynamic in more depth.
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Hunter Frey, Analyst
Hunter Frey, Analyst
Hunter Frey is an Analyst at Catalyst Capital Advisors, LLC and Rational Advisors Inc. covering all in-house equity strategies and an insider buying income-oriented strategy at Catalyst Funds. Mr. Frey received a Bachelor of Science degree in International Business with a focus in Spanish from Gardner-Webb University, Godbold School of Business, and is in pursuit of a Master of Business Administration in Economics and Finance from New York University, Stern School of Business.

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