The bond market flashed a major recession warning sign as the yield curve inverted this week. Meanwhile, Trump whipsawed markets when he appeared to blink in the never-ending trade war with China. That made for an interesting week for gold. In this week’s Friday Gold Wrap podcast, host Mike Maharrey breaks down the events of the last few days and their impact on precious metals. He also remembers an important day in history that went mostly unnoticed in the mainstream.
The gold market took a one-two punch on Tuesday as Trump made some concessions in the trade war and inflation numbers came in a bit higher than expected. Peter Schiff talked about it in his latest podcast, saying gold traders still don’t understand the gold rally.
The Federal Reserve has the US economy on monetary life support and Daily Reckoning managing editor Brian Maher says it will never again breathe on its own. As hedge fund manager Kyle Bass put it, the economy is trapped within the inescapable tractor beam of zero percent interest rates.
Gold has risen to six-year highs in recent weeks as the Federal Reserve has pivoted back toward an easy-money monetary policy. Markets widely anticipate a Federal Reserve interest rate cut this week and the economy appears to be slowing.
Peter Schiff recently appeared on RT Boom Bust to explain why he believes this is the beginning of a much bigger long-term rise in the price of gold. And it’s not just because the Fed is cutting rates.
Markets are basically in “hurry up and wait” mode as they anticipate the Federal Reserve FOMC meeting next week. Will the central bank cut rates as anticipated? Or will Powell and company surprise everybody?
In the meantime, there was some interesting economic and market news to digest this week. In this episode of the Friday Gold Wrap, host Mike Maharrey talks about the European Central bank meeting and the continuing surge in silver prices. He also looks ahead toward the next week’s Fed meeting.
Gold has pushed much higher in recent weeks, breaking through the $1,400 level and holding. Silver has also rallied and has started to close the gap with the yellow metal. In a recent podcast, Peter Schiff said we are seeing signs that the investment world is starting to catch on. The psychology has shifted and investors are started to realize that the gold bull-run is for real.
A lot of it has to do with the anticipation of more easy money from the Federal Reserve. Fed-speak continues to boost anticipation of an interest rate cut. The only thing dampening expectations is the possibility of higher inflation. Peter said that doesn’t matter. Inflation or not, the Fed is cutting rates.
Jerome Powell took center stage this week and the Federal Reserve chair didn’t do anything to dampen expectations of a rate cut. That sent both stocks and gold higher. The yellow metal pushed back above $1,400 after tanking in the wake of last Friday’s June jobs report and stocks swooned. Everybody seems to love Easy Street. In this episode of the Friday Gold Wrap podcast, host Mike Maharrey breaks down what the Fed chair said and didn’t say. He also debunks the “there is no inflation” myth and highlights some other interesting news in the gold markets.
There are two major factors driving markets right now – fears that tariffs are going to push the global economy into recession and hope that the Federal Reserve and other central banks will rescue it. What are the markets getting right? And what are they getting wrong? Friday Gold Wrap host Mike Maharrey talks about it.
The Federal Reserve FOMC met this week. When it was all said and done, the Fed did nothing. We’re stuck in neutral.
As expected, there was no rate hike. Fed Chair Jerome Powell indicated that the central bank would likely maintain this neutral stance into the foreseeable future, staying patient, neither raising nor lowering rates. So, why in the world did markets react like the Fed just jacked up interest rates? On this episode of the Friday Gold Wrap, host Mike Maharrey talks about it. He also gives an overview of the most recent World Gold Council demand report.
The Federal Reserve Open Market Committee meeting wrapped up yesterday with Fed policy still in neutral.
As expected, the FOMC left interest rates unchanged and seemed to indicate it doesn’t plan to do anything at all in the near-term. Jerome Powell’s comments dampened expectations that the central bank might move to cut rates in the coming months.
The committee is comfortable with current policy stance. Don’t see a strong case for a rate move either way.”
Most took Powell’s comments to be less dovish than expected, but Peter Schiff said he thinks the Fed is a lot more dovish than it admits.