Here's My Very Simple ViewMentioned this before, but as long as the FED keeps raising interest rates, the USD will remain strong vs. other countries' currencies as US fixed income securities with a higher and higher rate of interest paid in USD will become more and more attractive to both American and international investors vs. gold bullion or those gold stocks that pay zero in dividends. Add to this an inverted yield curve in which shorter term T-Bills actually pay higher interest rates than longer-duration ones, and Cash Is King with an even more valuable crown on its head IMO.
Thus, I believe as long as the USD remains strong, the price of gold will not rise to any signficiant degree and hold those gains.
Anyone think the FED is finished raising the Fed Funds Rate......? The BOC has indicated it's likely to put the BOC Rate on "pause" for now, but it's the FED that calls the shots re. the price of gold as the USD is considered the world's reserve currency, and as long as it remains strong, people will in all likelihood want to be in USD savings / fixed income instruments earning interest in USD instead of gold or gold securities.
I think the FED has at least two or three more 25 bps interest rate increases to announce over the next number of months, and it can take up to one year for any given increase to filter its way thoughout the entire economy, which means that even many of the past interest rate increases over the last year still haven't had their full effect on the economy yet (both in Canada and the USA), never mind any further increases over the next few months by the FED.
That's it. You may now go back to looking a charts, hunches, day trading, past financial crashes or shocks. etc. etc. to try and read the tea leaves.