Despite Declining Price, Gold is Strengthening

July 06, 2023

by Jan Nieuwenhuijs GoldSeek

The US dollar price of gold has been declining in the past two months, though it continues to show significant strength against the 10-year TIPS yield, to which it was tightly correlated from 2006 until 2021. Gold’s performance since early 2022 must be seen as bullish.

A big change has occurred in the gold market since Russia invaded Ukraine and the West seized the euro and dollar denominated assets from Russia’s central bank. Regardless of the price declining for the last two months, gold performance since February 2022 is momentous because it’s finally beating a pricing model that ruled from 2006 through 2021.