Expect gold to touch U$1,180/oz before my eldest child’s 13th birthday*. That’s what TIPS is telling us and here’s the famous TIPS/Gold correlation chart (TIPS 10 yr inverse yield) for visual proof:
Since this was taken last night, TIPS has rallied further and the yield is 0.52%. Lots of room for gold to bounce now.
UPDATE: Gold up U$13/oz since this was published, which is a nice start to the rally. But there’s more to come.
*Not telling you the exact date, but it’s early January.