Gold Looks Very Attractive
While we have seen yields rising in fixed income and even a modest rally in bitcoin, the one alternative that has my attention these days is gold. I bought some $GLD when gold futures were hovering new $4,000, then sold a slew of it after rallying some 15%. We are back down near $4,100 and I am getting aggressive again and will buy even more at lower prices.
Why am I so interested in the yellow metal?
First off, inflation hedging is great with gold; also, the dollar may have started a corrective phase here. More importantly, the market is predicting the Fed will NOT raise rates next week, as I think they should be doing. When you talk about wanting to bring inflation down to 2% and you just get a print that is 15% annualized, well there is a disconnect here. If the Fed next week in their meeting listens to the market it means more inflation and less fighting off high prices with rate hikes.
Those are the magic words for gold. Not many are talking about it now, but we are right here. The GLD at $375-380 looks very attractive, and next week might go on a massive run if the above scenario plays out.
At the time of publication, Lang was long GLD calls for January and April 2027
