by Charlie Morris via Money Week
In Part I, I reiterated that gold is in a bull market, and I suggested that a bullish target for $7,166 is both logical and plausible.
So how did I reach that conclusion?
Allow me to talk you through it, step by step below.
How inflation could get going again
US real interest rates are falling again.
The real yield is the difference between the US government bond yield and the expected future inflation rate. It tells you how much you could make, after inflation, by investing in government bonds. The current rate is 0.1%. That doesn’t sound like much – but is much better than what you’d get in Europe.