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Jim Wyckoff

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Goldilocks scenario for the gold market

April 9, 2020 by Jim Wyckoff

The gold market this week hit a 7.5-year high and the bulls are in full technical command, suggesting still more upside in the near term. The safe-haven metal bulls appeared to have found their sweet spot this week, as the Covid-19 situation has moved from panic to stabilization, which is encouraging buyers to step back into many markets, including the metals. However, the matter is still dire and the eventual outcome still uncertain enough to prompt safe-haven demand for gold. It could also be that metals traders are looking over the horizon and anticipating problematic price inflation, what with all the money being pumped into the financial system by the major central banks of the world. Economics 101 professors have been teaching for decades that when central banks pump lots of money into the financial system, the specter of increasing inflation is very likely. Stay tuned! Jim

Filed Under: Blog News, Jim's Morning Report, Uncategorized

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