In a recent interview, he explained that the fact that gold has been trending sideways over the past month is a positive indicator, even if it does not appear that way at first glance.
“This tells us that gold is starting to, believe it or not, pay attention to inflation. And the reason we know that is because interest rates are generally going down, ”said Solovey during an interview.
“If you look at the dynamics of interest rates in relation to gold over the past 20 years, then gold always falls when interest rates rise. Gold is not sold out yet. Over the past several months, we have seen sideways movement of the precious metal, while interest rates have been rising. And this tells us that the market is beginning to become aware of inflation, and the Big Money buys gold at any discount. So I'm still very, very optimistic about gold in the long run. ”