A Bullish Case For Gold

Gold (SPDR Gold Trust ETF (GLD)) failed to rally in the wake of the terrorist attack so the shorts came back in. But everybody has piled short as they are all waiting for the Federal Reserve to hike rates. This is the most anticipated rate hike in the history of interest rate hikes and again one and done is not gonna cut it. The Federal Reserve is going to need to raise interest rates substantially to validate this move in the dollar but they can`t. They can`t validate it because any significant move up in interest rates would precipitate a financial crisis.

We Are Going To Be Back In Official Recession Or Close Enough Soon

Long before the Federal Reserve gets to 1.00% rates if they actually start in December, we are going to be back in official recession or close enough to it that the Federal Reserve is going to have to stimulate the economy again.