The New CS Board

[jumanji0881]

Hold on to your gold; a Fed rate hike in 2023 could be too little too late for inflation - VanEck's Joe Foster
: https://www.kitco.com/news/2021-07-21/Hold-on-to-your-gold-A-Fed-rate-hike-in-2023-could-be-too-little-too-late-for-inflation-VanEck-s-Joe-Foster.html

My Comment: In the end, it is all about the debt and it will only get worse in the next financial crisis, especially sovereign debt.

Excerpt:
"The risk of lower real rates, a weaker than expected post-stimulus economic recovery, higher inflation, a weaker dollar, extreme debt levels, the final bursting of asset price bubbles and other unintended consequences of the massive liquidity injected into the financial system are all factors that may support higher gold prices in the longer-term," he said. "It is not hard to imagine an environment where more than one of these risks could come into play, significantly increasing gold"s appeal as a safe haven, inflation hedge and portfolio diversifier."

While there are plenty of long-term fundamental factors that support gold prices, Foster noted that the most significant headwind for gold remains the U.S. dollar. The greenback has shown some resilient strength even as bond yields have dropped to their lowest levels since the start of the year.

Foster added that a weaker U.S. dollar could be the key to drive gold prices back to $2,000 an ounce.