Asset manager and gold author, Matthew Piepenburg is calling for gold prices to skyrocket on a weaker U.S. dollar as the Federal Reserve gets to grips with the reality of an incoming recession and banking sector meltdown.
“I don’t expect a rate hike on March 22nd,” he said. “Powell is going to have no choice now. He has broken something.”
Piepenburg believes the actions of the Federal Reserve were instrumental in the failure of Silicon Valley Bank, saying “As these depositors started to take their money out, banks like SVB or [Signature] were forced to sell assets to meet depositor demands. The Fed, by raising rates all these months… [caused] the bond prices [to go] down, and so these banks which were faced with liquidity needs by their depositors had to sell those short-term notes… at a discount.”
The incoming recession means that the U.S. dollar will be significantly weakened, allowing the gold bulls to run the show. Piepenburg says gold will “rip” once the reality of recession bites.
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