RE:Great job, Jerome and "Dementia" Joe!!!!!! Many countries have huge debt to GDP ratio and many printed tons of papers to fight Covid economical consequences.
For years, inflation stayed low despite huge money printing and quantitative easing from Central banks.
POG increased substantially as real interests were low, even negative.
But what next ?
Real interest is the key element.
Current hawkish central banks positionning isn't good news for POG short term. It is a diret response to inflation.1
The market is positionning itself for agressive rates hikes, especially in the US, but as well in Europe after the change of tone form the ECB this week BUT I believe they will act slowler than what is currently anticpated because :
1) inflation surge should not last, at least at this rate.
2) some of the disruption in supply chains, which cause higher prices, should ease
3) central banks must take into consideraiton the economic outlook.
So what next for POG ?
a) Even with FED policy tightening, real interest rate will stay low or negative in 2022 so still in favour of POG... This link inflation-interest rate is the key component to determine were we go....
all depending of the market focus...
b) Geo-political tensions will certainly persist if not worsen and provide POG with some premium : Korea, Iran, Ukraine...
In summary,,,, good luck predicting POG in the near future :-)