$TYX/!PRII Weekly

This chart is the 'big board' with the longterm prospects for the gold price.  The chart is valid on a daily-weekly-monthly basis and is updated after 7pm EST.  As far as gold prices might go, they are subject to  how interest rates fare  vs. inflation,(at least during the term of the bull matket for gold prices) and with the longest term interest rate on hand in the largest market for long term bonds, interest rates remain below inflation.

A notable analogy can be drawn between the present rebound in the chart and the previous occasion when such a rise occurred in 2008.  There are similarities now between the 2008 gold price correction and the interim low in November.

We've seen a huge transit from peak to trough in the reversal from December a year ago now, and a huge rebound in what is perhaps the beginning of the second potential decline for a  triple waterfall crash of interest rates vs. inflation as had occurred from 2008 - 2011.

There are also significant signs of the development of hyperinflation in the U.S. economy.  The question then becomes which came first, the chicken or the egg? Which came first the alt-right or hyperinflation?  Whether the standard of negative real rates applies in this scenario vis à vis gold prices is an open question.

But the irony has been that bond prices are coming down to where gold prices are in the intervening weeks, rather than gold prices chasing bond prices, where there was a significant widening spread.

 http://schrts.co/IfQShG

-F6