Gold predicting that Big falling rates cycle has almost over

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There are several factors that can drive gold prices up in long term. Some of the key factors include:

1. Global Economic Uncertainty: Gold is often seen as a safe-haven asset during times of economic uncertainty or market volatility. Investors tend to flock to gold as a store of value when traditional investments like stocks and bonds are perceived as risky.

2. Inflation: Gold is often used as a hedge against inflation. When inflation is high and inflation expectations are going even higher, the purchasing power of fiat currencies decreases, leading investors to turn to gold as a way to preserve their wealth.

3. Geopolitical Tensions: Political instability, conflicts, and geopolitical tensions can also drive up gold prices. In times of uncertainty or conflict, investors may seek the safety of gold as a reliable asset.

4. Central Bank Policies: The monetary policies of central banks, such as interest rate decisions and quantitative easing measures, can impact gold prices. While investors thoughts that lower interest rates and expansionary monetary policies tend to be supportive of higher gold prices are widespread, in reality - higher due to inflationary concerns interest rates are more supportive for gold prices.

5. Demand and Supply: Like any commodity, gold prices are influenced by supply and demand dynamics. Factors such as jewelry demand, industrial demand, and gold production levels can all impact the price of gold.

These are just a few of the factors that can drive gold prices up. It's important to note that gold prices can be influenced by a wide range of economic, geopolitical, and market factors.

The main Graph is an Annual chart for ratio between Gold prices in US Dollars (XAUUSD) and US Inflation (USCPI).

In technical terms this graph indicates that 40-years deflationary plateau, and monetary cycle of falling USD rates has almost over, while due to mentioned above reasons, Gold can start its ride to outperform inflation within many upcoming years.

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September 1, 2024

👉 It's gone 4 months or so, since this idea was published.
👉 Spot gold (XAUUSD) is already at levels above $2,500 per ounce.
👉 The bloodiest wars, conflicts, high rates and inflation, as well as other perks of pro-inflationary reality, are still, alas, relevant to all the world.

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Fundamental AnalysisTechnical IndicatorsinflationexpectationsinflationhedgeTLTTrend AnalysisUS02YUS10YuscpiXAUUSD

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