Gold rally suggests deflation is history – Atlas Pulse

A 30% rally in gold appears to have run out of steam off late, which has led to a lot of chatter whether prices could move above $1400 handle on the back of low bond yields or lack of inflation or threat of deflation would cap further rally.

Right of the bat Charlie Morris, editor of Atlas Pulse states the yellow metal almost always follows long-term inflation and thus the rally in gold from Dec lows is in fact a signal that deflation is behind us. He adds further that bond yields (interest rates) cannot drop further and thus rates yields could only rise from here, which may derail the yellow metal rally.

Mike Ingram, strategist at BGC Partners, adds buying gold is a sort of hedge against currency debasement.

Coming to British Pound, Charlie Morris says the bird is undervalued and poised to move higher, which could push gold lower, given the rally in sterling would squash speculation of post Brexit vote gloom and doom. The segment was hosted by Alessio Rastani from Leading Trader.