Durrett Sees Two More Legs in Gold Price Rally

Gold mining stocks are trading at historical lows despite a significant increase in gold prices from $2,000 to $5,600 an ounce over the past two years. According to Don Durrett, founder of Gold Stock Data, this disconnect is indicative of a brewing bull market for miners.

Durrett points out that US fiscal policy, with a national debt of approximately $40 trillion growing by around $2 trillion annually, leaves policymakers unable to fight inflation and support economic growth simultaneously. He believes the Federal Reserve is trapped and will ultimately prioritize economic growth through money supply expansion.

This, in turn, should lead to a prolonged rally in gold, driven more by global concerns over US fiscal policy than jewellery demand or mine supply. Durrett forecasts two more stages for miners, with the first leg already underway and the second expected to begin within months.