Gold has been stuck in this range for quite some time. Although it hadn't been looking great for some time, due to the falling bond yields and the deeply negative real rates... Gold could finally break out. However until we see it break and reclaim 1920-1940 which is also the 2011 ATH gold might just got a little higher and then drop hard. In the case of a rising dollar gold might have a hard time and in terms of Technical analysis 1680 & 1450 are two areas that it could break and 1360 is an area that it could actually retest.
To me gold isn't an inflation hedge, although over the years it can help preserve value (at least it used to). What gold is right now is like a zero coupon bond and as yields fall lower, it is like a better option than a US treasury (risk free) + it is a policy/system hedge. If something goes wrong, gold could benefit from the instability in the financial system.
Of course currently things don't look as bad, but low rates could definitely benefit gold. A proper close above the 2011 ATH and we might see big upside.
To me gold isn't an inflation hedge, although over the years it can help preserve value (at least it used to). What gold is right now is like a zero coupon bond and as yields fall lower, it is like a better option than a US treasury (risk free) + it is a policy/system hedge. If something goes wrong, gold could benefit from the instability in the financial system.
Of course currently things don't look as bad, but low rates could definitely benefit gold. A proper close above the 2011 ATH and we might see big upside.