Gold plunges as real yields surge
Published : Saturday, 27 February, 2021 at 5:37 PM Count : 186
Having broken below $1800 earlier in the week, after suffering a 'death cross', gold prices are plunging this morning - on heavy volume - as real yields soar.
When will people stop selling gold and silver and realize that rising inflation is not a one-time threat that will be stopped by raising the Fed rate and strengthening monetary policy? Peter Schiff explains:
"They [the Fed] are not going to do anything. The dollar is going to fall, which is the mother of all litter for gold. And so, it's going to happen for a while. But in the meantime It's really slow to pull in to create more buying opportunities for them. "
In fact, Powell told the market this week, "Don't worry, we're not going to tighten monetary policy year after year." Despite this commodity markets are screaming inflation. Oil, industrial metals, grains, beans - these are all big earners. The only thing that doesn't catch the bid is gold.