Pay attention to Gas prices, as they’re an indicator of the ECONOMY; oil prices have been declining because the REAL economy is shrinking; what’s not shrinking is government spending and the demand for U.S. dollars, which with higher interest rates are becoming increasingly more difficult to have access to, for PRIVATE businesses.
It’s a very strange arrangement, for most people not involved in the forex markets, but it’s really not that complicated. Gold prices are up, not because Gold will replace the U.S. dollar, Gold Prices are up because there’s a growing SHORTAGE of Gold, you have to remember the Environmental, social, and governance(ESG) agenda in practice is an attack on productivity, so it’s now more EXPENSIVE to mine for Gold, so obviously fewer people are doing it, and the numbers, show that around gold $400 based on CURRENT market condition, would trigger more capital being deployed into the gold space.
I don’t even think Gold $3000 will motivate people, because ESG is just to expensive, don’t forget that there are government regulations that existed PRIOR to ESG, and most countries that are rich in gold not yet discovered, are known for nationalization of private property, so it’s very risky and expensive to mine for Gold in todays climate.
Gas is a different market, because oil and gas are consumed, and if consumption continues to shrink, so will prices, and production, so with the energy markets, when the economy picks up steam, don’t be surprised when you see some interesting fluctuations.
Interesting times ahead