Breaking News

What Is The Next Bullish Fundamental Driver For Gold?

By Tommy HumphreysCommoditiesMay 11, 2014 12:27AM ET

www.investing.com/analysis/snb-switzerland/grains-us-wheat,-corn-tick-up-after-sell-off,-eu-wheat-down-212330

What Is The Next Bullish Fundamental Driver For Gold?

By Tommy Humphreys | May 11, 2014 12:27AM ET

Saved. See Saved Items.

This article has already been saved in your Saved Items

Gold

+0.36%

Add to/Remove from Watchlist

During the final phase of the last Gold rally between 2008 and 2011, we heard a lot about any number of bullish catalysts for gold:

The long term decline of the US Dollar as the world’s reserve currency
Insatiable Asian demand for physical gold
The specter of hyperinflation resulting from the Federal Reserve’s quantitative easing policies
Negative real interest rates
Central bank accumulation of gold

And the list goes on……

As we sit here today in May 2014 none of these formerly bullish fundamental drivers appears to carry much weight in driving the day-to-day price of gold. When will this change? And what will be the next major fundamental driver in the next leg higher for gold?

While I believe that many of the aforementioned factors will continue to contribute to the long-term gold bull market. There is one scenario which seems more likely, and more bullish, than all of the others.

A steady push higher in the rate of inflation combined with continued interest rate suppression by global central banks could send real interest rates at the short end of the curve into deeply negative territory (more negative than they were during 2011-2012). This would add a double whammy to the dollar via negative real yields and soaring inflation. All of these factors are likely to be very bullish for the gold price.

So I ask you, what is the next bullish fundamental driver for gold?

Related Articles

The Energy Report: Fear Strike Out By Phil Flynn - Apr 19, 2024 1

A wild evening of risk on and risk off as the market fear cages had a significant test and geopolitical events are on the cusp of our worst nightmares. Now the market must decide...

Gold Hits Record High Amid Growing Geopolitical Unrest By Andrey Goilov - Apr 19, 2024

Gold prices have soared past 2400.00 USD, reaching a new record high on Friday. This marks the fifth consecutive week of gains for the precious metal, fuelled by increasing market...

Gold to Find New Buyers Near $2300 By Gregor Horvat - Apr 19, 2024

We've seen significant risk-off movements during Asian trading hours following reports that Israel retaliated against Iran, as indicated by the media. However, Iran stated that it...

Add a Comment

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:

Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
Only English comments will be allowed.
Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

I have read Investing.com's comments guidelines and agree to the terms described.

Write your thoughts here

Are you sure you want to delete this chart?

Post also to:

Replace the attached chart with a new chart ?

1000

Comment Guidelines

Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.

Please wait a minute before you try to comment again.

Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.

<div id="comment">
				<div class="comment js-comment" data-comment-id="{commentID}" id="comment-{commentID}" data-user-id="">
    <div class="mainComment js-content">
       <div class="commentInnerWrapper">
        <a href="{userLink}" class="js-user-link"><img src="{userImage}" width="33" height="33" alt="{usernameAlt}" class="img" onerror="this.src='https://i-invdn-com.investing.com/defaultUserMaleTmp.png';"></a><div class="commentBody">
                					<span class="commentUsername">
                    	<a href="{userLink}" class="js-user-link js-user-name">{username}</a>
					</span>
                                <span class="js-date" comment-date="{dateFormat}" comment-date-formatted="{dateFormatted}" title="{dateTitle}">Just Now</span>
                <div class="commentDropDown js-commentDropDownWrapper " data-user-id="" data-cid="{commentID}">
	<a href="javascript:void(0);" class="threeDotsIconSmall js-thinDropdownArrow"></a>
	<div class="tooltipPopup commentActionsPop noHeader js-commentDropDownOptions displayNone">
		<div class="addRow js-option share">
			<a href="javascript:void(0);" class="js-commentSharePopup" data-cid="{commentID}" data-curl="{commentLink}"><span class="smallShareIcon middle"></span>Share</a>
		</div>

<div class="js-option addRow follow">
            <div class="js-follow-post-button" data-reg_ep="follow comment">
                <span class="alertfollowIcon middle"></span>Follow this post            </div>
            <div class="js-unfollow-post-button displayNoneImp">
                <span class="alertUnfollowIcon middle"></span>Unfollow this post            </div>
        </div>

<div class="addRow js-option save"  data-reg_ep="save comment">
		<a href="javascript:void(0);" class="js-save-item-btn" data-item-type="comments" data-item-id="{commentID}">
			<i class="saveItemBigIcon middle"></i>
			Save		</a>
	</div>
	<div class="addRow saveItemsConfirmation noHover displayNone js-saveItemResult">
		
<div class="content js-saveItemSuccess displayNone">
	<span class="mediumGreenSuccessIcon"></span><span>Saved. See <a href="/members-admin/saved-items" target="_blank">Saved Items</a>.</span>
	<a href="javascript:void(0);" class="bugCloseIcon js-close"></a>
</div>
<div class="content js-saveItemAlreadySaved saveItemAlreadySaved displayNoneImp">
	<span>This comment has already been saved in your <a href="/members-admin/saved-items" target="_blank">Saved Items</a></span>
	<a href="javascript:void(0);" class="bugCloseIcon js-close"></a>
</div>
	</div>

<div class="addRow shareButtons js-sharePopup displayNone">
			<div class="js-shareComment"><span class="js-shareCommentSpan"></span></div>
		</div>
	</div>
</div>
                 <div class="commentAuthor js-comment-by-author"><span class="commentAuthorIcon"></span>Author's response</div>             </div>
		<div id="commentText-{commentID}" class="js-text-wrapper commentText withImage">
							<div id="commentBigChart{commentID}" class="commentBigChart js-comment-chart" onclick="openViewChartPopup('{commentID}')">
					<img src="https://d1-invdn-com.investing.com/comments_images/{commentImage}" alt="{commentAlt}">
					<i class="newMagnifyChartIcon"></i>
				</div>
						<span class="js-text">{commentContent}</span>
			<div class="clear"></div>
							<div class="commentButtons js-not-master-user">
					<a href="javascript:void(0)" class="reply js-reply-btn" data-real-parent-id="{commentID}" data-to-user-name="{username}" data-to-user-id="">Reply</a>
					<div class="inlineblock likeDislikeBox js-like-dislike-box" data-item-id="{commentID}">
	<input class="js-like-checkbox" type="checkbox" name="option" value="Yes" id="like_{commentID}">
	<label for="like_{commentID}" class="like" title="I agree"></label>
	<span class="numOfLikes js-like-count lighterGrayFont">0</span>
	<input class="js-dislike-checkbox" type="checkbox" name="option" value="No" id="dislike_{commentID}">
	<label for="dislike_{commentID}" class="dislike" title="I disagree"></label>
	<span class="numOfDislikes js-dislike-count lighterGrayFont">0</span>
</div>

<div class="reportComment js-flag float_lang_base_2">
                            <a href="javascript:void(0);" id="commentFlag_{commentID}">
                                <span class="reportCommentIcon middle"></span><span class="inlineblock middle">Report</span>
                            </a>
                        </div>
                    				</div>
					</div>
	   </div>
	</div>
	</div>			</div>
			<div id="reply">
				
    <div class="commentReply js-comment js-comment-reply" data-comment-id="{commentID}" id="comment-{commentID}" data-user-id="">
		<div class="commentInnerWrapper"><a href="{userLink}" class="js-user-link"><img src="{userImage}" width="33" height="33" alt="{usernameAlt}" class="img" onerror="this.src='https://i-invdn-com.investing.com/defaultUserMaleTmp.png';"></a><div class="commentBody js-content">
            				<span class="commentUsername">
					<a href="{userLink}" class="commentUsername js-user-link js-user-name" onMouseOver="">{username}</a>
				</span>
                        <span class="js-date" comment-date="{dateFormat}" comment-date-formatted="{dateFormatted}" title="{dateTitle}">Just Now</span>
			 <div class="commentAuthor js-comment-by-author"><span class="commentAuthorIcon"></span>Author's response</div> 			<div class="commentDropDown js-commentDropDownWrapper " data-user-id="" data-cid="{commentID}">
	<a href="javascript:void(0);" class="threeDotsIconSmall js-thinDropdownArrow"></a>
	<div class="tooltipPopup commentActionsPop noHeader js-commentDropDownOptions displayNone">
		<div class="addRow js-option share">
			<a href="javascript:void(0);" class="js-commentSharePopup" data-cid="{commentID}" data-curl="{commentLink}"><span class="smallShareIcon middle"></span>Share</a>
		</div>

<div class="js-option addRow follow">
            <div class="js-follow-post-button" data-reg_ep="follow comment">
                <span class="alertfollowIcon middle"></span>Follow this post            </div>
            <div class="js-unfollow-post-button displayNoneImp">
                <span class="alertUnfollowIcon middle"></span>Unfollow this post            </div>
        </div>

<div class="addRow js-option save"  data-reg_ep="save comment">
		<a href="javascript:void(0);" class="js-save-item-btn" data-item-type="comments" data-item-id="{commentID}">
			<i class="saveItemBigIcon middle"></i>
			Save		</a>
	</div>
	<div class="addRow saveItemsConfirmation noHover displayNone js-saveItemResult">
		
<div class="content js-saveItemSuccess displayNone">
	<span class="mediumGreenSuccessIcon"></span><span>Saved. See <a href="/members-admin/saved-items" target="_blank">Saved Items</a>.</span>
	<a href="javascript:void(0);" class="bugCloseIcon js-close"></a>
</div>
<div class="content js-saveItemAlreadySaved saveItemAlreadySaved displayNoneImp">
	<span>This comment has already been saved in your <a href="/members-admin/saved-items" target="_blank">Saved Items</a></span>
	<a href="javascript:void(0);" class="bugCloseIcon js-close"></a>
</div>
	</div>

<div class="addRow shareButtons js-sharePopup displayNone">
			<div class="js-shareComment"><span class="js-shareCommentSpan"></span></div>
		</div>
	</div>
</div>

</div>
		<div id="commentText-{commentID}" class="js-text-wrapper commentText withImage">
							<div id="commentBigChart{commentID}" class="replyBigChart displayNone js-comment-chart">
					<img src="https://d1-invdn-com.investing.com/comments_images/{commentImage}" alt="{commentAlt}">
					<i class="newMagnifyChartIcon"></i>
				</div>
				<span id="commentSmallChart{commentID}" class="commentSmallChart pointer js-comment-chart" onclick="openViewChartPopup('{commentID}')">
                    <img src="https://d1-invdn-com.investing.com/comments_images/{commentImageSmall}" width="116" height="52" alt="{commentAlt}">
                    <span class="chartMagnifyOverlay displayNone"></span>
                    <span class="searchGlassIcon chartMagnify displayNone"></span>
                </span>
						<span class="js-text">{commentContent}</span>
			<div class="clear"></div>
							<div class="commentButtons js-not-master-user">
					<a href="javascript:void(0)" class="reply js-reply-btn" data-real-parent-id="{commentID}" data-to-user-name="{username}" data-to-user-id="">Reply</a>
					<div class="inlineblock likeDislikeBox js-like-dislike-box" data-item-id="{commentID}">
	<input class="js-like-checkbox" type="checkbox" name="option" value="Yes" id="like_{commentID}">
	<label for="like_{commentID}" class="like" title="I agree"></label>
	<span class="numOfLikes js-like-count lighterGrayFont">0</span>
	<input class="js-dislike-checkbox" type="checkbox" name="option" value="No" id="dislike_{commentID}">
	<label for="dislike_{commentID}" class="dislike" title="I disagree"></label>
	<span class="numOfDislikes js-dislike-count lighterGrayFont">0</span>
</div>

<div class="reportComment js-flag float_lang_base_2">
                            <a href="javascript:void(0);" id="commentFlag_{commentID}">
                                <span class="reportCommentIcon middle"></span><span class="inlineblock middle">Report</span>
                            </a>
                        </div>
                    				</div>
					</div>
		</div>
    </div>
			</div>
			<div id="show-more-comments">
				<a class="showMoreComments block">
					<span class="arial_12 showArrowafter">Show more comments (<span class="js-amount"></span>)</span>
				</a>
			</div>
			<div id="show-more-replies">
				<a class="showMoreReplies block">
					<span class="arial_12 showArrowafter">Show more replies (<span class="js-amount"></span>)</span>
				</a>
			</div>

Are you sure you want to delete this chart?

Replace the attached chart with a new chart ?

1000

Comment Guidelines

Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.

Please wait a minute before you try to comment again.

I feel that this comment is:

Spam

Offensive

Thank You!

Your report has been sent to our moderators for review

More Categories

1D1W1M6M1Y5YMax

	US 30	37,973.0	+197.6	+0.52%
	US 500	4,965.5	-45.6	-0.91%
	Dow Jones	37,986.40	+211.02	+0.56%
	S&P 500	4,967.23	-43.89	-0.88%
	Nasdaq	15,282.01	-319.49	-2.05%
	S&P 500 VIX	18.71	+0.71	+3.94%
	Dollar Index	105.960	-0.022	-0.02%

	Crude Oil WTI	83.25	+0.52	+0.63%
	Brent Oil	87.38	+0.27	+0.31%
	Natural Gas	1.760	+0.003	+0.17%
	Gold	2,406.75	+8.75	+0.36%
	Silver	28.747	+0.367	+1.29%
	Copper	4.4930	+0.0565	+1.27%
	US Soybeans	1,150.50	+15.50	+1.37%

	U.S. 10Y	4.623	-0.026	-0.56%
	U.S. 30Y	4.713	0.002	0.04%
	U.S. 5Y	4.672	0.016	0.34%
	U.S. 3M	5.411	+0.014	+0.27%
	US 10Y T-Note	107.84	+0.14	+0.13%
	Euro Bund	131.04	-0.17	-0.13%
	10-2 Yield Spread	-35.57	-0.87	2.51%

	Apple	165.00	-2.04	-1.22%
	Alphabet A	154.09	-1.92	-1.23%
	Tesla	147.05	-2.88	-1.92%
	Amazon.com	174.63	-4.59	-2.56%
	Netflix	555.04	-55.52	-9.09%
	Meta Platforms	481.07	-20.73	-4.13%
	Bank of America	36.97	+1.20	+3.35%

Most Popular Articles

Stock Market Today: S&P 500 extends losing streak on Nvidia, Netflix... By Investing.com - Apr 19, 2024 63

Oil prices in weekly loss as prospect of Iran-Israel escalation cools By Investing.com - Apr 19, 2024 36

Gold's glittering run set for bumpy ride as rate-cut expectations... By Investing.com - Apr 19, 2024 15

Bitcoin halving is a ‘price non-event' - expert By Investing.com - Apr 19, 2024 7

Gold prices rally past $2,400 on reports of Israel strikes on Iran By Investing.com - Apr 18, 2024 10

Stop Panic Selling During Market Corrections: Stay Disciplined, Invest... By Francesco Casarella - Apr 19, 2024 27

Powell's Inflation Warning Drives 10-Year Treasury Yields to Breakout... By James Picerno - Apr 17, 2024 9

Rate-Cut Forecast Now Seen for September at Earliest By James Picerno - Apr 18, 2024 7

Top 3 Cryptocurrencies to Buy on the Dip Before Next Market Rebound By Günay Caymaz - Apr 18, 2024 3

Netflix Stock: Buy the Dip, It Won’t Last Long By Thomas Hughes - Apr 19, 2024 4

Central Banks Rates

	Central Banks		Interest Rates	Next Meeting
		FED	5.50%	May 01, 2024
		ECB	4.50%	Jun 06, 2024
		BOE	5.25%	May 09, 2024
		SNB	1.50%	Jun 20, 2024
		RBA	4.35%	May 07, 2024
		BOC	5.00%	Jun 05, 2024
		RBNZ	5.50%	May 22, 2024
		BOJ	0.10%	Apr 26, 2024
		CBR	16.00%	Apr 26, 2024
		RBI	6.50%	Jun 07, 2024
		PBOC	3.45%
		BCB	10.75%	May 08, 2024