The reason I ask this question is because of a good old investment advisor's comment on BNN Market Call Tonight, not that he's completely wrong or right inflation is still a factor for a higher gold spot price but things have evolved since the last major recession 10 years ago.

https://www.bnnbloomberg.ca/market-call-tonight/david-cockfield-discusses-equinox~1728851

Stats & charts don't lie, the US inflation chart over the last 10 years as an average of 1.96%.

https://www.usinflationcalculator.com/inflation/current-inflation-rates/

With the exception of not having inflation I think the 5 biggest factors that is bullish for gold that we have in play right now for a run up in the spot price itself which is good for gold producers & other gold equities are:

1) Interest rates going lower in the US & all over the developed economies.

2) USD which I believe will roll over eventually, Trump wants to devalue the currency getting their exports up trying to get back that first place away from China but that will most likely not happen.

3) Trump's trade wars, again he's fighting a losing battle as history repeats itself every past trade wars turned out to be negative for world economies.

4) US debt along with many other countries.

5) Trump himself, he's the biggest geopolitical risk to the world since Hitler imho, nobody knows in what mood he will be in from one day to the other, he as proven himself that he might be a happy trigger type of guy. It's easy to see he's flexing his muscles with all the firepower he as in hand as he likes to show it off, just my opinion something is not running ok in his mind.

Inflation between 2009 to 2011, 2009 at 2.7%, 2010 at 1.5% & 2011 at 3% average at 2.4 just a tad over what central bank's target at 2.0% & gold ran from $856 early Jan 2009 to a high late Aug 2011 at $1990 or 132.4% on not much inflation, it did not stop the gold bull.

Inflation for 2018 at 1.9%, 2019 at 1.6% presently so since Aug last year gold still had a uptick with low inflation, from Aug 17 - 2018 gold price $1177 & closed today July 12 - 2019 at $1416 or 20.3%, still no high inflation & the gold bull is just starting.

https://www.usinflationcalculator.com/inflation/current-inflation-rates/

https://goldprice.org/gold-price-chart.html

Did gold still perform well even with a strong USD ?

The USD started a uptick in late Sept last year as per the chart & gold still had a uptick with a stronger USD.

What will happen when the USD rolls over if it happens which early indicators are there that it will happen, how will the gold spot react ? It looks good for gold & gold equities especially producers, royalty streamers followed by explorers.

https://www.tradingview.com/symbols/TVC-DXY/

On Sept 21 - 2018 gold spot closed at $1196 & closed today July 12 - 2019 at $1416 or 18.39% even with a uptick on the USD the gold bull is still digging in & charging.

https://goldprice.org/gold-price-chart.html

Gold stock investors followed the trend of the gold spot price, one can use a ETF chart like XGD which is a basket of large producers & will be the early runner out of the gate once a gold bull starts with a low in early Sept - 2018 at $9.15 & to today's close July 12 - 2019 at $14.05 or 53.55% uptick.

https://stockcharts.com/freecharts/gallery.html?XGD.TO

ETF chart ZJG a basket of junior mid & tier producers will be next to run out of the gate but with a much bigger uptick which started in early Nov - 2018 low at $36.84 to today's close July 12 - 2019 at $53.97 or 46.5% uptick & catching up.

https://stockcharts.com/freecharts/gallery.html?ZJG.TO

One can see the up trend for the spot price that started in late Aug last year which matches the equities by looking at an ETF like XGD large gold producers & by using an ETF like ZJG junior & mid tier producers that are catching up that should past the majors by a good % margin in gold's next seasonal trade that should start in mid to late Aug for an early entry to Feb next year for an exit.

Next question, could deflation be good for gold ?

Cheers, all the best & getting in before the heard will produce big returns.

As always always do your own due diligence

Ti-Butch or Marc in Gatineau