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Gold is up $14 from the European low and $8 on the day to $1835.
It reversed lower yesterday on the rout in bonds and risk trades but it has since steadied and is now on track for the highest close of the month.
Gold is now up in 8 of the past 10 trading days, though it still hasn’t covered the two-day rout at the end of January. If it can get above $1850-$1853 there’s plenty to like here.
Gold is having trouble telling its story but price action is the ultimate driver of narrative. If it can get some momentum and get over that $2000 hump, the funds will flow. I think there’s plenty of attention on Russia-Ukraine right now. The worry is that Russia might have to sell gold reserves in the event of sanctions but the market appears to be implying less of a risk of invasion.
On the inflation side, I have to point out that gold did very well despite higher interest rates in the 1970s and 80s but Bretton Woods was undoubtedly part of that.