Gold has been up strong lately and I believe it will go even higher. Here’s why:
This is the seasonally best period of the year for gold. Gold has rallied over 85% of the last 30 years in the month of August. Of course, it could go down but the odds are strongly in our favor.
The dollar is collapsing. Gold is really a type of currency. For centuries, it was currency. Technically it is just a metal but people around the world flock to gold when other currencies are going down. It is a hedge against governments inflating and destroying their own currency.
As the dollar collapses, more money will flow into gold.
But gold is also in a bull market in other currencies so that will also support gold.
Commodity prices are in a bull market and that will translate into higher inflation down the road. Commodity prices tend to be a leading indicator of inflation. Inflation is just another way of saying that the government is degrading the currency. As discussed above gold is a hedge against governments degrading their currency.
I did a live webinar yesterday where I went into detail on my outlook for gold.
You can view a replay here.