Earlier we broke down a new Credit Suisse report arguing for the end of the gold era.
There are two halves to the argument.
One is that the economy is improving, and that interest rates will enter a period of normalization.
The other half is that the existential fears about the end of western capitalism are finally coming to an end.
In the report, analysts Tom Kendall and Ric Deverell point out this chart, which suggests that the run is already over. For the first time in years, gold has dropped below a 3-standard deviation band around the core trend line.
Kendall and Deverell note that the break from trend occurred right around Mario Draghi’s speech last year, when he promised to do whatever it took to save the Eurozone.
Photo: Credit Suisse