Before we get started, it's important to point out that I believe that broader equity markets remain in a secular bull market with global central banks' easing monetary policy amid a backdrop of a boom in artificial intelligence that carries equity markets significantly higher in coming quarters.
But the key in my opinion was that real interest rates were going higher.
The way I'm defining 'real interest rates' is the prevailing nominal yield on a bond, the 10-year Treasury in this example, adjusted by the expected 10-year inflation level.
Put simply, real interest rates are how much you actually earn on a fixed income investment after adjusting for inflation.
So my outlook is that gold will continue to rally alongside equity markets.
Persons:
let's, Todd Gordon, Gordon, HMY
Organizations:
Harmony, Equity, Treasury, Stock, Edge, Inside Edge, CNBC, NBC UNIVERSAL
Locations:
South