Gold prices will power back to record highs in the very near future as a direct result of Federal Reserve actions. Research firm Capitalight Research’s head of research, Chantelle Schieven says gold prices will rocket this year as ongoing rate hikes trigger a deep recession.
She said that with all signs pointing to a further series of 50-point rate hikes, the gold bulls are primed to begin a new run. “The faster you raise interest rates, the faster something is going to give, that something is going to break. Gold doesn’t need a crisis to move higher, but it definitely loves a crisis. The price action we are seeing suggests growing investor interest in gold to hedge against inflation and other risks.”
With Federal Reserve Chairman Jerome Powell taking a hawkish stance in his earlier testimony to Congress, markets believe there is now a 80% chance of further aggressive rate hikes taking place. However, this action is only likely to push the economy into recession, rather than reduce inflation due to a wide array of other issues.
“The demand for green energy, falling globalization and the demand for domestic supply chains are all inflationary and long-term trends that aren’t going away,” Schieven continued. “We don’t expect to see lower inflation anytime soon based on the way the world is changing.”
With gold expected to quickly rally, time is of the essence. Buy now.
