Gold's Rip Your Face Off Rally is Here

Gold last traded at $1,775 an ounce. Silver at $26.03 an ounce.

NEWS SUMMARY: Precious metal prices were stable Friday with gold on track for a third weekly gain. U.S. stocks dipped early and then rebounded as investors shrugged off tax fears.

Kingsley/FX Street-Gold defied the daily selling stretching over to commodities such as oil. Gold and miners defied also the daily weakness in silver which I rightly found little concerning. The decoupling from the Treasury yields pressure goes on, and is further relieved by Treasuries catching a bid again.

The dollar staged a daily reversal, but for how long would that last? The other indicative engine behind the precious metals growth, the USD/JPY pair, is tilting solidly in the direction of the yen carry trade suffering a setback, which means unwinding quite a few 'no brainer' trades, including those short precious metals. Remember, when yen as the safe haven currency strengthens, gold usually likes that.

Such is the amply clear big picture: Now, it's up to gold and silver to catch up on what they missed since the early Aug 2020. Inflation is running hotter, and the Fed is tolerant of it, amply supplying liquidity. The gold bottom is in, and much brighter days ahead.

The stage is set for both gold and silver's rip your face off rally, powered by the miners.

This [gold chart] is as bullish as it gets. Miners are leading, and Treasury yields aren't a headwind any longer for now. Naturally I'm standing by the call of decoupling from nominal yields getting more pronounced, and by increasingly lower dollar values powering precious metals higher, especially in the second half of this year."