Gold is gearing up for what could be a huge rally if inflation soars, according to one market analyst. The senior market strategist of brokerage firm RJO Futures, Daniel Pavilonis says that the Federal Reserve’s current monetary policy, following last month’s symposium, suggests rising inflation is on the horizon. That, according to Pavilonis is great news for gold and will push the precious metal to a massive rally.
He said, “We’re starting to see rising inflation. In the next two months we’ll be going into the elections… the market is beginning to pause and trade sideways. Structurally, it looks great…it’s really just cluing up to move a lot higher. When we start to see inflation where we can’t get ahead of it, we’re not raising interest rates… then you’ll see a massive move in gold.”
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