Gold Fundamentals Getting More Bullish
It’s been a volatile month thus far for the major market averages, but the yellow metal (GLD) has continued to hold its ground, seeing minimal downside volatility and up more than 10% just over halfway through Q2. This exceptional performance is a massive change in character from Q1 when the metal couldn’t find a single bid and made consecutive new lows vs. the S&P-500 from a relative strength standpoint. Importantly, during this period of strength, real rates have continued to plunge, emboldening the bull thesis for gold and suggesting that new highs are ahead for the metal. In fact, gold is only 10% higher than it was when real rates hit a new multi-year low in mid-April, while real rates have slid another 80%. One of the best ways to play this move looks to be Kirkland Lake Gold (KL). Let’s take a closer look below: