Gold had settled as high as +22.2% above said average; at present ’tis still a lofty +18.4% above same. So we ought not be surprised should Gold further subside.
Lambourne writes: "Such a low level of swaps was the expectation if we were moving toward a time when gold was going to be revalued, as it always seemed sensible to eliminate the swaps before a reset."
Valuations remain deep into dangerous bubble territory, heralding a serious bear market to normalize stock prices with earnings. Despite soaring 27.2% in 2024, gold remains the most-underallocated asset.
Overall, the market development remains strongly bullish, and we expect market participants to want to see the round psychological mark of USD 3,000 as soon as possible.
Increased demand for gold as well as the perceived "remonetization of gold" would almost certainly lead to higher bullion prices. Maybe not as high as $10,000, but likely not as low as $2,800.
