A case for goldRealizing the factors behind what is currently driving the POG can assist you in getting a jump on where the POG is going.
Consider the US Fed and their actions in having the most effect on gold's price currently.
Back when the Fed had the eager masses believing that inflation was transitory when indeed it wasn't, the masses soaked it up and dumped gold. When it finally came out they were mistaken in that inflation was not transitory at all , the POG spiked.
It wasn't long before the Fed had the POG coming down from its all time high when they began announcing their upcoming battle with inflation through interest rate hikes.
The masses bought into the nonsense Fed rate hikes would stymie inflation.
The nonsense being, such small rate hikes well below inflation levels won't in fact stymie inflation at all but what does the average investor know.
With the Fed convincing the masses otherwise in that their inflation fight is real, they have been selling gold.
Now with the consensus Fed rate hikes are turning recessionary, the slight drop but only temporary drop in inflation foreseen but due to mass liquidations that will ensue to combine with the peak inflation narrative the Fed is currently feeding the masses right now has resulted in this latest sell off below $1800 US.
That's the recent history and current status to date. Where to from here?
A loomiing recession spells trouble for rates and the Fed will have to reverse course .
A reverse course on stimulus spending put into monetary effect by the Fed will follow to keep what will soon be a sputtering bubble economy from choking to death. This will have huge inflationary consequence manifesting beyond the standard inflation time lag into 2024 and beyond.
The question is, when will the masses get wise to all of this and pile back into gold as an inflation hedge all over again.
The smart money knows to start accumulating now. The masses will pile in much later once they come to realize the Fed is completely out of ammunition and further Fed story-line to tell.
Gold stocks tend to lag behind the POG but the gap is closing.
Tudor Gold could come back with some amazing results this summer or maybe not, but the chances for good results far outweigh the chances for poor results with Tudor's past record. And you will want to be ready in time for that outcome and take advantage of that regardless of the Fed keeping the wool over the eyes of the average investor and where the POG.this summer will sit
On the other hand you will want to know where the POG will be 6 months from now and beyond.
The smart money is watching the Fed and their every move very closely and how the herd reacts on their every word no matter how bogus. And particlarly for this as an accurate barometer on the movement of gold to come.
Makes the whole gold picture easier to understand and follow when you consider the case of the Fed and the gullible masses that move gold when and why.