The fundamental support for gold will likely come from nascent inflationary fears (see inflation expectation report below) and central banks likely to face difficulties to normalize policy out of fear to stir equity market unrest. Across the board dollar weakness has returned and is also a positive catalyst for gold. Sentiment towards gold is poor which is ...positive. Lastly, there is no such thing as digital gold. The ongoing crypto recovery is, we believe, temporary and to be followed by a second wave of excruciating losses as more investors (will) get sucked back in, led to believe that the January crypto crash was an opportunity, rather than a warning shot. The metal complex is currently trending higher (above its 50d and 200d ma). Momentum is not overbought (with gold and silver trading within their Bollinger band). We still see as a negative the high correlation of gold with stocks which remains abnormally high by historical comparision which has been an across asset class problem that led to the "collective" liquidation from early February (which was aggravated by risk parity funds).
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