{"id":131618,"date":"2021-07-08T19:49:09","date_gmt":"2021-07-08T19:49:09","guid":{"rendered":"https:\/\/precoinnews.com\/?p=131618"},"modified":"2021-07-08T19:49:09","modified_gmt":"2021-07-08T19:49:09","slug":"gold-investors-call-feds-inflation-bluff","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/markets\/gold-investors-call-feds-inflation-bluff\/","title":{"rendered":"Gold investors call Fed\u2019s inflation bluff"},"content":{"rendered":"
Sprott Asset Management senior managing director Ed Coyne discusses why the Fed is entertaining tapering asset purchasing.<\/p>\n
Gold investors are taking the wheel, setting the precious metal up for a major rally as investors realize the Federal Reserve is powerless against rising and persistent inflation, according to one strategist.<\/p>\n
The precious metal on Thursday was flirting with a sixth straight day of gains, hovering near $1,800 an ounce. It has rallied 8.5% since touching a nine-month low of $1,677.70 an ounce on March 8.<\/p>\n
"Markets are basically preparing for the wrong outcome," said Peter Schiff, CEO and president of Westport, Connecticut-based Euro Pacific Capital.<\/p>\n
Schiff says markets are finally starting to come to the conclusion that "inflation is not transitory," and is a problem the Federal Reserve will try to solve with rate hikes and tapering. <\/p>\n
FORGET INFLATION – DEFLATION COULD REAR ITS UGLY HEAD SOON<\/strong><\/p>\n Investors have begun pricing in tighter monetary policy, and therefore a weaker economy, by buying U.S. dollars and Treasurys. <\/p>\n The dollar this week hit a three-month high against a basket of its peers heavily weighted in favor of the euro. This as the 10-year yield fell to 1.25%, or -95 basis points when adjusted for inflation, both of which were the lowest since February. <\/p>\n