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AG Thorson
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The Consumer Price Index rose 4.2% from a year ago, compared to economist’s estimate of 3.6%. The monthly increase blew away the forecasts of 0.3%, arriving at a blistering 0.8%. We have not seen numbers jump to this degree since 2009.

As inflation soars, real rates (Treasury yields minus inflation) will hurt bond and equity investors while benefiting hard assets like precious metals.

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Our cycle work suggests gold formed a major low in March 2021, and prices are just beginning their next major advance. It is not too late to for long-term holdings – we prefer physical precious metals and view them as the original decentralized asset.

GOLD FUTURES DAILY: Gold is consolidating just below the intermediate trendline. A breakout above $1850 would be bullish and should trigger the next leg higher in the coming days. Prices would have to drop and close below $1800 to suggest a more profound pullback, which I view as highly unlikely given today’s data.

GOLD BIG PICTURE: The big picture monthly chart of gold paints an incredibly bullish picture, in our opinion. After breaking out to new all-time highs last August, prices corrected back to the 20-month moving average. The last time we had a similar setup was in 2004. From here, our technical outlook anticipates a multi-year advance to a minimum target of $7500. However, given today’s monetary policy, a voyage to $10,000 or even $15,000 is not unreasonable by 2028 or 2030.

Silver and platinum are also primed to explode higher over the coming weeks as inflation rages. Gold miners remain reasonably priced. Our Premium Metals Portfolio has been accumulating quality miners throughout the pullback and is well-positioned for this next advance.

AG Thorson is a registered CMT and expert in technical analysis. He believes we are in the final stages of a global debt super-cycle. For more information, please visit here.

For a look at all of today’s economic events, check out our economic calendar.

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