Gold has collapsed from the top last week even though the stock market was crashing significantly. This is an indication the uptrend targets have been reached. As per long explanation in my old post "Big picture gold is a bad long term investment" a new multi-month downtrend has started. Also this means that we should expect significant deflation pressure during that period, since Gold is in reverse correlation with real interest rate (interest minus inflation) and there is no reason to expect FED to start raising interest at least in near terms. Therefore the inflation should fall significantly even into a negative zone. The current situation with the virus including lock-down cities even, countries, falling tourism, transportation, recreation makes perfect sense to expect deflation.
