Is Gold Set to Tear Even Higher? Four Key Charts to Watch

Gold last traded at $1,899 an ounce. Silver at $27.88 an ounce.

NEWS SUMMARY: Precious metal prices steadied near 5-month highs Tuesday on rising inflation and a falling dollar. U.S. stocks rose as enthusiasm about the economic reopening lifted travel and energy stocks.

Yahoo Finance--"Gold bullion is one of the best-performing commodities this month, erasing almost all of this year’s losses. Investors have been lured back by gold’s appeal as an inflation hedge, while the Federal Reserve maintains its monetary stimulus and says price pressures should prove temporary. Spot gold rose 0.4% on Friday, capping a fourth straight weekly gain.

Diego Parrilla, who runs the Quadriga Igneo fund, is among those who recently boosted their exposure to gold, saying that central banks won’t risk increasing interest rates to combat inflation for fear of 'pricking the enormous bubbles' they’ve created.

'We have entered a new paradigm that will be dominated by deeply negative real interest rates, high inflation, and low nominal rates - an extremely supportive environment for gold,' said Parrilla, who manages $350 million.

It’s been the hottest question in finance this year, and probably the biggest one for gold: will current inflationary pressures be transitory or persistent?....

The dollar has been another important driver of gold this year...Most analysts don’t see much movement in the dollar going forward, with the median forecast compiled by Bloomberg suggesting only a slight strengthening."