What we are observing now seems a little not reasonable because what primarly comes to our mind is that during the time of high in the US and Europe and stock dropping 30% (or even more in nearest months) is that gold should adjust its price and go up. However the situation is opposite, beside the spike after beginning of the war between Russia and Ukraine the price is going down.
To understand this situation we have to compare the price of gold to dollar strengh index which raised in last months since FED started raising interest rates. Dollar comparing to foreign currencies became extremely strong. This kind of situation we didn't see for a very long time - over 20 years. Previous even higher index was in 1985, almost 40 years ago but situation since that time in the world definitely changed, dollar has more competitors. I don't expect this time we will see similar situation but there is possibility that we can see levels from early 2000's. Strong dollar will lower the price of gold .
What will happen?
Upcoming recession may stop raising interest rates policy. FED will have to make decision, raise interest rates during the recession and dropping stock market or lower to speed up economy. I think it's quite unlikely to raise rates in 2023, then gold may start the run.
Each time when dollar strength was lower gold was going up. This time is very possible that will be similar. Next 1-2 years will be good for gold accumulation and expected good profits in next years.
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