How the Debt Cycle Favors Gold | Metals Mine

  • How the Debt Cycle Favors Gold

    From sprott.com

    In May, spot gold declined by $77.59 per ounce (or -1.68%) to close the month at $4,540.26, marking its third consecutive monthly decline. Since the sharp mid-March sell-off, largely driven by the unwinding of extreme leveraged positioning, gold has entered a consolidation phase. Prices have traded within a relatively narrow range, bounded by the declining 50-day moving average on the upside and strong support around $4,500 in closing prices and the 200-day moving average on intraday swings (see Figure 1). This lower bound appears to be an accumulation zone for central banks, particularly in China, suggesting ... (full story)

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