Gold closed above $700/oz today (Thu 9/6) for the first time since May 2006. In fact, gold has been on a tear for the last month rallying from around $650 (1 year chart).
As people anticipate a rate cut, which is inflationary for the dollar, gold seems to be rallying. If we don’t get that rate cut on Sept. 18 gold could dip.
But if the economy continues to show weakness and the Fed is ultimately forced to cut multiple times gold should do quite well.