‘Gold is worth around $5k’ as the yellow metal ‘has gone from a pure play on real rates to a pure play on liquidity’ – Fidelity’s Timmer - Kitco
‘Gold is worth around $5k’ as the yellow metal ‘has gone from a pure play on real rates to a pure play on liquidity’ – Fidelity’s Timmer - Kitco
Source: Kitco
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DW NOTE
Timmer's liquidity thesis explains why gold fell 18% from its January peak even as the Strait of Hormuz stayed closed and the Fed raised rates in September — it's trading inversely to the VIX, not directly to real yields. If gold is now a liquidity gauge, the $5,000 target depends entirely on whether the 14-handle VIX and equity complacency persist through a 6% global oil supply cut.