Gold to shine again?
Everybody hates gold these days, but with the March FOMC meeting coming up, things could get "dynamic" to the upside.
The surge in gov debt over past 10 years is huge and interest payments going forward are not looking great. Real rates must be kept negative.
With FOMC around the corner Fed probably needs to do something. YCC is probably pre mature, but there are other ways to start preparing the crowd. Should they address some of the "issues", gold could become the asset to squeeze higher.
Even if the probability could be small, we believe options plays offer an interesting risk/reward. It is a small premium you pay should Fed give gold a boost.
Now, from a technical analysis, wait for the price to form a continuation pattern and watch strong price action for buy.
The surge in gov debt over past 10 years is huge and interest payments going forward are not looking great. Real rates must be kept negative.
With FOMC around the corner Fed probably needs to do something. YCC is probably pre mature, but there are other ways to start preparing the crowd. Should they address some of the "issues", gold could become the asset to squeeze higher.
Even if the probability could be small, we believe options plays offer an interesting risk/reward. It is a small premium you pay should Fed give gold a boost.
Now, from a technical analysis, wait for the price to form a continuation pattern and watch strong price action for buy.
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