Monetary tightening has created difficulties for the US and foreign governments in managing debt. As these issues persist, gold’s role as a hedge against monetary instability and geopolitical unrest becomes increasingly important.
Should the Fed pay attention to the IMF’s warnings about global financial risks and deteriorating market conditions? Probably, but more red-hot inflation data means their hands are tied.
Rising interest rates reveal the consequences of exorbitant debt and leverage. When the free money disappears, what remains tends to flow into real assets.
The current pace of rate hikes has no modern precedent. With recessionary red flags popping up everywhere, what will it take for the Fed to reverse course?
The futures market is flashing a very clear, and very rare, signal. Gold’s jump from $1,680 to $1,800 could the be the beginning of a significant move higher. Right now, gold is still on the sale of the century.
As the Fed grapples declining GDP and the growing threat of recession, will they let the economy crumble and defeat inflation, or juice the markets again?