According to Rind, the rise in gold prices in 2020 was driven mainly by fear, as many buyers flocked to the precious metal to hedge against the crisis. When everything calmed down and the world returned to normal, gold became a less attractive asset. Now the yellow precious metal is waiting for the next impulse.
This could be due to inflation. “I think we are now looking for signs of an inflation problem. Not just inflation — we know we have inflation — but indications that the market is acknowledging an inflation problem, ”Rind said.
Beyond inflation, the US dollar needs to be watched: “The dollar is always an important factor when we talk about gold. Recently, the dollar has taken a rather bullish position. " But if the dollar shows some weakness after the announcement of the cut in support, it will be a positive factor for gold.
Rind continues to believe that a new supercycle is starting in the commodities sector for a number of reasons: “I think we are now in a 'perfect storm' moment, with prices for nearly all commodities rallying. And this is largely due to COVID and the restoration of supply chains - many factors are interconnected here. But I think there is a second, longer term, one that concerns the transition to a zero carbon energy infrastructure, or at least a less carbon intensive energy structure. ”