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00:00Tell us is there confidence in what is seems to be a gold rally here or if we've actually just reached too quickly too fast. I think people are the it's gone very quick for investors so people are a little bit careful about jumping at this point but it's it's very interesting exciting to see some of the longer term trends broken down trend lines broken in particular when we wrote about last week. So we really think that something interesting is happening here . And what what is that exactly and what is the backdrop as is the Federal Reserve and perhaps confidence shaky and what they might do next. Absolutely. Our comrade our partners on the commodity side pointed out last week that because of the reduced expectation for interest rate rises from the Fed and the the disconnect of gold from the from the dollar that they raised their the expectations for gold price. They're forecasting to fifty for the end of the year. Well we seem to be very close to that already so maybe they'll lift their expectations further. That seems to be sort of the news your call on gold if you if you look at the backdrop of the theory of Peak Gold if you will is is there anything to that. Yes we believe so. You know you can look at the amount of money that's been invested in iron ore and copper ore and coal over the last decade and they've created a lot of new capacity. But even though there's quite a lot of money spent in the gold space in the last decade there's not a lot of new capacity that's been brought on and as Goldcorp has been pointing out it's becoming increasingly difficult to bring on new capacity. And in. If you look at there's a Bloomberg data set showing gold production and that's indicating that the gold production is rolling over at this point. So although some of the the big commodity forecasters have not sort of picked up on that one yet they're looking at annual data. If you look at the quarterly data there's there's indications that it's rolling over now .

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JPMorgan: Gold Rally Breaks the Bullion Downtrend

John Bridges, Analyst at JPMorgan joins Bloomberg TV Canada's Pamela Ritchie to discuss what's next for gold after bullion prices surged 12% year to date. (Source: Bloomberg)

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