GOLD TO CLINCH $1,900 THIS WEEK! Future Trends
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Future Trends Digest
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Big Week for Gold and Silver - We got both
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What's transpired in the past 48 hours doesn't leave much room for doubt… the people at the FED are not waiting on Washington to unclog the port congestions, incentivizing chip manufacturers to prioritize automobiles over other types of chips or relax health measures to bring people back to work. Instead, they are going to raise rates by a lot!
Following last week's Friday drama, Future Money Trends now sees a full 50bps rate hike, and the markets have accepted it as well.
The markets are so hawkish right now since they think the FED is about to raise rates even before the meeting, but that looks extremely unlikely:
Courtesy: Zerohedge.com
This whole crisis in expectation management started with Bullard, who decided to freestyle it and talk out of turn about his analysis that even half a point (0.50% hike) isn't enough…
In over 20 years, the FED hasn't raised rates by 0.50% in one fell swoop, and Bullard thinks that's not enough!
It's gotten so bad that the markets are frantically buying and selling in sheer panic and distress:
Courtesy: Zerohedge.com
If we're reading the financial landscape properly, the amount of propaganda to convince everyone inflation is transitory will now come back to haunt the Federal Reserve, and gold will rise sharply.
In fact, I expect gold to see its first $50/ounce day in many months in February.
It's abundantly clear that we now live in a world where FED policy errors are considered as NOT raising rates.
We need to raise them…
Courtesy: Zerohedge.com
I think the most important reason to raise rates is that Washington is doing virtually nothing, so the FED must take the helm.
It's also critical to raise them because you want to leave room to cut them later on, but I think raising rates is only half of the equation because selling the FED's massive asset portfolio is the real solution.
The FED nationalized large portions of debt that ought to be held by real buyers and owners: individuals, countries, and institutions.
We are one month away from a historic rate hike cycle, and gold broke out to its highest level since Thanksgiving. I think $1,900/ounce could happen as soon as this week – momentum is strong!
Gold is the best asset for the first half of 2022 , and we are about to get proof!