FED Actions Should Pressure Gold
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Once again, the master manipulators, better known as the Federal Reserve, are manipulating dollars to try and keep interest rates low. They are scared to death that rates will get away from them, as they have every time. They have tried to control and keep them artificially low.
The entire QE program has been a debt building bust, from Bernanke through Yellen and there are no real changes expected. The latest in the FED screw ups is their manipulation of the dollar – trying to stem the tide of rising interest rates by slamming the dollar. The FED has been able to create massive wealth for the rich and at the same time blow 5 trillion dollars on nothing.
The most recent FED actions have led to a big rally in gold, their desire for artificial inflation has brought gold to highs not seen since last July. The huge move in gold comes from lows that showed major damage and a breakdown on a weekly basis. In one-month, gold has gone from rags to riches because of the FED’s cluelessness.
Although we believe the bear market in gold is over we are concerned about the recent rally and the speed in which it has risen. There is no doubt the FED will lose control as they have done every other time, which should create some short-term pressure on gold. We expect a selloff from between $1,340 and $1,360.