Gold
I got a request to write something about the recent fall in gold prices. Gold had rallied the last decade through a combination of “it’s the end of the world” buyers and concerns about inflation. These concerns are now getting replaced with expectations for high real rates driven by growth and a Fed exit, and from expectations of low inflation. Consequently, gold has suffered. Oil – another hedge fund commodity favorite – has held on to its gains, showing support for some industrial commodities (and supporting a growth thesis – sort of).
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