In case you’re wondering if Gold is in a bubble. It might be far from it, here’s why:

1. Fed is cutting rates, for economic and macro reasons Gold tends to go up historically whenever this happens.

2. Fed has started purchasing $40bn in treasuries that basically means $40bn printed by Fed every month.

3. Trump is straightaway sending stimulus checks, $1776 checks are on the way and $2000 checks are likely to be sent next year before midterms. In addition, the government is also spending more money through tax cut, subsidies and on military.

4. Interest payments are bound to increase year over year, meaning the government is printing more money than ever before.

5. Geopolitical risk, with the withdrawal of US from the global stage, closure of USAID and threats against Canada, Europe and other ex allies like India, central bank buying by some countries in this group is likely to accelerate. Countries like China, Russia and India trust the dollar even less now so.

6. Retail demand, it’s become a momentum trade at this point and retail traders are starting to get in.

Lastly, the way to look at gold is not how gold is performing against the dollar but how the dollar is performing against gold. Gold will go down if dollar is expected to become stronger. We saw this in early 2010s where after austerity and US economic recovery Gold started to go down and then flattened. That does seem likely in near future.