Bloomberg Intelligence has warned of a ‘severe economic reset’ due to ongoing Federal Reserve rate hikes – a scenario that creates ideal conditions for the gold bulls.
Strategist Mike McGlone’s June outlook noted, “The fact that the Federal Reserve and most central banks remain focused on tightening despite collapsing commodities, producer prices and bank deposits may portend a severe economic reset. Our base case for a severe economic reset is gaining fuel as China data disappoint and liquidity by most measures continues to contract.”
We are already seeing gold moving into a position to fully capitalise on this economic pressure, with prices now set up to trade above record highs. McGlone explained, “Gold at the end of May is exhibiting parallels to 2008-09, just before it breached £808-an-ounce ($1,000-an-ounce) resistance. Constrained by £1,617 ($2,000) now, the metal appears as a caged bull awaiting a catalyst, and a Fed pivot is a top candidate.”
Don’t wait. Buy gold now before prices soar.
