Gold, a proxy for confidence in those leading government and economies, will most likely remain cause building throughout most if not all of 2016. While causing building is not liftoff, it's an important phase within cycle of accumulation and distribution. Liftoff, a gold rally against all currencies that jumps the creek, likely waits until 2017 (chart 2).
Chart 1: Gold, US Treasuries (TLT), German Bunds (BUNL), and Euro (FXE
Chart 2: Gold price in all currencies
Headline: Streetwise: Markets Putting Faith in QE4?
Since the medieval church clamped down on the sale of indulgences, it has been hard to put a price on religious faith. Not so with central banks. The value of trust in the world’s leading policy makers is calculated second by second, and stood at about $1,209 an ounce on Monday.
The gold price is far from a perfect measure of belief—or lack of it—in policy makers. But its 14% rise supports one popular explanation for this year’s...
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