On December 27, 2016, NIA predicted with gold at $1,132 per oz that it was about to make an explosive short-term rally of $78 per oz to $1,210 per oz. Over the following 13 trading days, gold soared by $87 per oz to a high on January 17th of $1,219 per oz!
Since January 17th, gold has dipped to $1,188.40 per oz but gold’s fundamentals have continued to rapidly strengthen – with the forward 5-year price inflation rate rising 13 basis points to a new multi-year high of 1.96%! Meanwhile, the forward 24-month Fed Funds Rate has only risen by 4 basis points to 1.58% – a sign that the Fed is continuing to fall dangerously behind on inflation, a best case scenario for gold!
The difference between the forward 5-year price inflation rate minus the forward 24-month Fed Funds Rate has increased since January 17th by 9 basis points to 38 basis points – causing gold’s short-term fundamental fair value to rise to $1,248 per oz!