New minutes released this week from the latest Federal Reserve meeting suggests a disappointing economic outlook, confirms tapering is on the cards and rates are almost certain to be hiked; all things that favour higher gold prices.
Responding to the details contained within the minutes, chief economic strategist Todd Horwitz says, “The bond market… is telling the Fed that the rates are too cheap and they need to start the hike. The other thing we will see if they don’t take action is inflation is getting bonkers… it makes no sense that they refuse to commit to the inflation curve.”
Inflation has been a hot topic for gold industry analysts in recent weeks as the clear signs of soaring inflation are regarded as a catalyst for higher gold prices. The precious metal has proven this correlation to be true with a big move higher in recent weeks – something that we are likely to see a lot more of.
Horwitz says that gold currently looks “terrific” and he sees it going a “lot higher. He notes, “It’s kind of stair stepping its way up, which is always better when you want to look for a longer term gold market. That’s what we’re going to see.”
Now is the time to buy. Act quickly.