Gold Price and Budget Deficit: both spike by 2021
Dear Steemit friends,
Consider the correlation between the budget deficit and gold price, shown on the chart below (courtesy of FerderReport). US budget deficit is in blue, and gold price is in yellow. It looks like the budget deficit forecasts gold price a year or two in advance: on the chart, the blue line is shifted forward by 18 months.
With the recent tax cuts in the US, budget deficit is expected to balloon over the next few years. If the correlation between the deficit and gold price continues, new all-time highs in gold price is quite possible.
Let me know what you think in the comments.
Good long-term outlook for gold.
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