(Kitco News) – Historically, the gold miners have led the bullion market in price direction, and right now, the equities are suggesting a rebound in price is underway, said Pierre Lassonde, chairman emeritus of Franco-Nevada.
“Right now, there is a bit of a discrepancy and it started about last week where in fact thegoldd equities are up when the gold bullion is down, so I’m kind of wondering whether or not we’re right at this particular point in the cycle where the equities are telling the bullion market that maybe there’s a turn coming,” Lassonde said.
Gold has seen a bear trend since its highs in August, 2020.
“The main answer to that is 10-year TIPS and the U.S. dollar, and a little bit of the Bitcoin. If I can take all three separately, I would say that the increase in yields that we’ve seen in the U.S., particularly recently, accounts for 40% to 50% of the decrease in the gold price. The decrease in the U.S. dollar value, vis a vis other currencies, probably 30%-40%, and the rest I would say, 10% to 20%, is due to the mania around Bitcoin,” he said.
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