It seems that the prospects of monetary tightening and higher real interest rates will continue to put downward pressure on gold prices.

The infrastructure spending will add pressure to the ongoing energy crisis and high producer price inflation.

Gold is likely to remain under downward pressure resulting from the prospects of the Fed’s tightening cycle.

All in all, the outlook for the precious metals market is not bullish, even though the last several days/weeks might make one feel otherwise.

It might be the case that investors are now focusing on inflation.

If history is any guide, there are high odds that gold may struggle further for a while before starting to rally next year.

While the outlook for the precious metals sector is very bullish for the following years, it’s very bearish for the following weeks.

The slowdown in global economic growth caused by the burst of China’s real estate bubble should bring us closer to the stagflationatory scenario.

With silver outperforming and key supports for the USDX holding, what’s in store for the precious metals in the upcoming months?

It seems that until the Fed tapers its quantitative easing, gold will remain under downward pressure.

The current inflation is more demand-driven than the Fed is ready to admit.

The focus on the upcoming tightening cycle creates downward pressure on gold prices, which counterweighs worries about the labor market or inflation.