SX Gold & Metals Advisor | August 24, 2021

Gold Still Waiting for a Crisis Catalyst

Gold has remained subdued in recent weeks in spite of an obvious increase of global and domestic worries on the public health, economic and geopolitical fronts.

The question as to why gold hasn’t responded more favorably to these concerns is being asked by investors right now, but the answer provided here is that a genuine crisis “inflection” hasn’t yet arrived.

That could soon change, however, given that Congress is on the cusp of passing a series of spending bills that could prove to be the tipping point into runaway inflation.

Iron ore and steel, meanwhile, are experiencing choppy waters along with copper, yet all three have intermediate-term upside potential based on bullish fundamental factors. The short-term outlook, however, remains weak.

Finally, lithium is taking a much-deserved break after a huge run-up in the last several months. Profit-taking was evident in the lithium miners last week, but as with the other major industrial metals, the fundamentals should prove strong enough to prevent an outright bear market from appearing.


Among major financial assets, nothing holds its value (or increases) quite like gold in times of major crises. That’s the emphatic conclusion of a study of the last seven major U.S. crisis periods over the last 20 years.
More so than gold, silver is driven by sustained weakness in the U.S. dollar. Consequently, the dollar’s latest strength has been less than kind to the white metal’s price outlook.

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