If there is a new correction on stock markets, gold is expected to be a perfect store of value. Investors are betting against central banks as they think that currencies are now hyper-diluted compared with bullion. Gold, different from the greenback and other currencies, cannot be printed and investors are buying it in vast quantities, driving both the spot price and futures to less than $50 away from their highest ever levels.
The trend remains strongly bullish, even if some technical indicators are now showing gold as hyper bought, reflecting how quick the recent rally was. At this stage, there is no correction signal, while the weakening of the greenback is further boosting gold’s rally.
