The Prospector News

Jordan Roy-Byrne – “Two Roads for Gold & Both are Bullish”

You have opened a direct link to the current edition PDF

Open PDF Close
Uncategorized

Share this news article

Jordan Roy-Byrne – “Two Roads for Gold & Both are Bullish”

 

 

 

 

 

The macro fundamentals are not bullish for Gold at this moment.

 

 

The Fed is still tightening. The economy has picked up a bit, and so too, have inflation expectations.

 

 

This means higher real rates for now. Not bullish.

 

 

However, the market discounts and anticipates in advance.

 

 

And both of the most realistic economic outcomes are bullish for Gold.

 

 

Let me explain why.

 

 

History shows us that a soft landing is impossible when trying to kill or decrease inflation significantly. Policymakers may be able to engineer a very temporary soft landing, but inflation is primed to reaccelerate in such a scenario.

 

 

The reacceleration of inflation in late 2023 or 2024 would be far more damaging to the economy than in 2021 and 2022, when the economy was recovering from a major shock. It would be more stagflationary and recessionary, which drove Gold in the 1970s.

 

 

This outcome is why a hard landing is required to kill inflation.

 

 

Under a hard landing scenario, the Fed hikes several more times, and after they pause, the stock market rolls over, and the economy follows suit.

 

 

Bond yields, which would peak before the Fed’s final hike, plummet lower as inflation expectations crash and the market discounts Fed easing. Gold would move towards a breakout shortly before the Fed begins easing.

 

 

Technically, Gold remains in a bullish consolidation from a bird’s eye view as it continues to hold above the 38% retracement from the 2016 to 2020 rebound. However, neither of those two aforementioned economic scenarios will appear imminent unless Gold moves back above $1950 and Gold vs. S&P 500 makes a higher high.

 

 

The economy has yet to reach that fork in the road, but it will.

 

 

The threat of lower prices and more time until a breakout move gives us another chance to buy the highest quality juniors with the most potential. Recently, I have introduced a larger watch list of these types of companies for my subscribers.

 

 

I focus on finding high-quality juniors with 500% upside potential over the next few years. To learn the stocks we own and intend to buy, with at least 5x upside potential in the coming bull market, consider learning about our premium service.

Posted March 6, 2023

Share this news article

MORE or "UNCATEGORIZED"


GR Silver Mining Extends Silver Mineralization with Step-Out Drilling at San Marcial 11.9 m @ 226 g/t Ag Eq* including 0.9m @ 716 g/t Ag Eq

GR Silver Mining Ltd. (TSX-V: GRSL) (OTCQB: GRSLF) (FRANKFURT: G... READ MORE

July 25, 2025

Big Ridge Gold Corp. Closes Upsized $5.2 Million Private Placement

Big Ridge Gold Corp. (TSX-V: BRAU) (OTCQB: ALVLF) is pleased to a... READ MORE

July 25, 2025

St. Augustine Closes Private Placement

St. Augustine Gold and Copper Limited (TSX: SAU) is pleased to announce ... READ MORE

July 25, 2025

GoldShore Intersects Additional Mineralization Beneath the Conceptual Open Pit at the Southwest Zone with 22m of 1.30 g/t Au

Goldshore Resources Inc. (TSX-V: GSHR) (OTCQB: GSHRF) (FSE: 8X00)... READ MORE

July 25, 2025

Benz Announces Closing Final Tranche of A$13.5M Financing

Benz Mining Corp. (TSX-V: BZ) (ASX: BNZ) is pleased to advise tha... READ MORE

July 25, 2025

Copyright 2025 The Prospector News