TSX:KNT - Post Discussion
Post by
ErinBrockovich on Jul 29, 2024 10:25am
This Is True
You have to appreciate these shakeouts in gold as the macro thesis remains intact.
The Fed’s hands are tied by the escalating cost of federal debt, increasing the likelihood of multiple rate cuts.
If history is any indication, a substantial drop in short-term interest rates is likely to create a strong tailwind for gold prices.
We saw this effect in the early 2000s, during the housing bubble, and again in 2019, before the pandemic recession.
H/t to my friends at Incrementum AG for inspiring the chart below.
@RonStoeferle
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