Gold is another example of how the Fed’s over extended easy money policy has created government dependency. Gold traders are still not willing to embrace inflation. As the price of just about every other raw commodity has rapidly increased in cost, gold has been a reluctant participant. The dollar strength hasn’t been supportive for sure but gold traders seem more fearful of a rate hike than anything else. In fact, gold couldn’t rally on a big risk off earlier in the week either. Late last week gold failed to break out above the $1,835-$1,840 range. So, to say that I’m disappointed in gold’s recent performance is an understatement. We will see if gold can find value in the range around $1,800. A dip closer to $1,885 is not out of the realm of possibility either. I remain long term bullish on the yellow metal. Remember the money supply is at all time record highs. In 2020 alone, we added 30%.

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Frank J. Cholly

Senior Market Strategist
Frank is a swap registered trader who brings his clients more than twenty-six years of commodity futures experience. He was a member at the Chicago Board of Trade for 10 years where he filled orders in the grain and financial pits. Frank was also a Lind-Waldock's floor manager for ten years and later joined on as a commodities broker.
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