The Fed is hawkish about jacking up interest rates, but even the mainstream is catching on to the disconnect between Fed rhetoric and actual data.
The recent Federal Reserve rate increase and talk of more boosts in the future has sparked a rally for the dollar. This has caused the price of gold to sag. But TJM Institutional Services managing director Jim Iuorio recently said on CNBC’s Futures Now that he’s still bullish on gold because he thinks the Fed’s hawkish tone doesn’t line up with actual economic data.
I’m a longer-term bull in gold and if you look at the long-term chart the trend is still higher. What the Fed said yesterday is disconcerting to the market, and that’s why the dollar rallied so hard. But as we start to move away from that, we start to see some data that is deteriorating, the dollar should shrink back again and gold should be fine.
This post was published at Schiffgold on JUNE 21, 2017.