What people are saying is that because we are going to have a higher inflation, the Federal Reserve is going to have to raise interest rates to fight that higher inflation and those higher interest rates will be bullish for the U.S. Dollar and a strong dollar is going to hurt gold prices. But even if we do get one or two interest rate hikes over the next several years, that will not be sufficient to restrain the inflationary forces that will be building in the economy.
So even if interest rates go up slightly, inflation will go up much more and so real interest rates in an inflationary environment will be falling and not rising and that is very negative for the U.S. Dollar and it is extremely positive for gold. (Barrick Gold (ABX), Market Vectors Gold Miners ETF (GDX), Market Vectors Junior Gold Miners ETF (GDXJ), SPDR Gold Trust ETF (GLD), Newmont Mining (NEM), Goldcorp (GG), NovaGold (NG))
- ► 2017 (188)
- The Bearish Gold Narrative Is False
- Higher Inflation Is Bullish For Gold
- For How Long Can The Market Be Oblivious To Higher...
- The Catalyst For The Next Economic Recession
- Bond Market: Serious Technical Damage Has Been Don...
- The Stock Market Is Getting It Wrong
- This Can Be A Blowoff Top In The U.S. Dollar
- Newly Negotiated Trade Deals & Infrastructure Inve...
- The Beginning Of An Explosive Move Up In Interest ...
- The Stock Market Bubble Needs To Deflate
- This Is A Gigantic Bond Bubble
- The 30-Year U.S. Government Bonds Will Collapse
- The Bond Bubble Is Deflating
- Stock Market, Gold & Bonds
- U.S. Economy: What Trump Is Planning To Do Is Impo...
- Bond Market: Explosive Move In Yields In Reaction ...
- Trump: The Bond Market Is Giving A Flashing Warnin...
- The Only Way Central Banks Could Hurt Gold Prices
- Gold: A Down Payment On Much Larger Returns
- ▼ November (19)
- ► 2015 (344)
- ► 2014 (429)