Gold Hits 4-Month High Amid “Transitory” Inflation

by Gerardo Del Real

Gerardo Del Real


I hope everyone had a great Memorial Day weekend and took time to acknowledge those who have sacrificed so we can enjoy long weekends. 

On to the markets... 

We continue — and will continue —  to see new record highs in the major U.S. stock indices.

The manufacturing economy continued expanding in May for the 12th month in a row.  

The Institute for Supply Management (ISM) said on Tuesday that its index of national factory activity increased to a reading of 61.2 last month from 60.7 in April.

The devil is always in the details, and a quick check under the hood shows all is not well.

Business Survey Committee panelists reported that their companies and suppliers continue to struggle to meet increasing levels of demand.

Record long lead times, wide scale shortages of critical basic materials, rising commodities prices and difficulties in transporting products are continuing to affect all segments of the manufacturing economy according to the report.

Sounds like the entire supply chain is seeing issues. 

There’s also a labor shortage as anyone who has purchased a used vehicle recently can tell you.

We’re also seeing it in the mining sector with drillers in short supply and high demand. Some companies that are looking to drill are reporting single to no bids from drillers until 2022. 

But inflation is transitory. Riiight? 

Gold just hit a four-month high alongside a weaker dollar.

We now need a break above $1,920 and then $1,975 to make a push towards new all-time highs which are coming. 

Is there a chance we get another pullback before getting there?


On the silver front, the next month or two could provide some fireworks because there isn’t much resistance between $30-$50.

For anyone worried about the recent pullback in the copper price some perspective is important. It’s pulled back from all-time highs, which is healthy. 

Get used to $5.00 to $6.00 per pound copper because that will be the new norm. More on that next week.

But don’t worry, inflation is transitory. 

Let's get it!

Gerardo Del Real

Gerardo Del Real
Editor, Resource Stock Digest

For the past decade, Gerardo Del Real has worked behind-the-scenes providing research, due diligence and advice to large institutional players, fund managers, newsletter writers and some of the most active high net worth investors in the resource space. Now, he is bringing his extensive experience to the public through Resource Stock Digest, Junior Resource Monthly, and Junior Resource Trader. For more about Gerardo, check out his editor page.

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