UK Inflation at 3 ½ year lows, UK unemployment at 4 year lows and the currency is at 3-year highs. In fact, the pound is posting is best 7-month period since the 17% posted in March-October 2009, when global markets were ignited by joint BoE-Fed quantitative easing to the benefit of risk currencies such as GBP. Lower inflation usually implies a weaker currency, but in the case of the UK, the steady decrease in CPI has occurred in tandem with the sharpest decline in unemployment since the late 1990s.
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It's time to revisit the weekly gold chart and its similarity with the horror year of 2013, which included a 25% collapse in the Apr-Jun period. This time last year, I published several videos on why gold's decline to 1690s (in summer 2021) would be reversed, rather than repeat the collapse of summer 2012. The arguments were made here and here . But now that we've held the lows of March and Aug 2021, is the signal flashing an unequivocal green light for the rest of the year? Or, will gold bulls sustain fresh blows as inflation comes back to bite in autumn?