Will Gold Rise if the Fed Cuts Rates?

At the last seminar, Federal Reserve Chairman Jerome Powell finally uttered the words that consumers and investors had been waiting to hear since July 2023, preparing to cut interest rates.

After Powell's speech, Kevin Grady, President of Phoenix Futures and Options, exclaimed, "Gold has remained stable, even at all these Fed meetings without rate cuts."

In fact, since the Fed completed multiple interest rate hikes over a year ago, it has held eight meetings with no easing measures.

And during this aggressive rate hike cycle, gold has not just remained stable.

From March 1, 2022, the day the Fed first raised rates, to the end of last weekend, gold has been one of the best-performing assets during this period.

Now, as Fed Chairman Powell signals that interest rates may start to fall, many analysts believe that a brighter path for gold in the future is becoming increasingly clear.

For instance, legendary gold analyst George Milling-Stanley predicts that if an interest rate environment supportive of precious metals develops due to rate cuts, the price of gold could reach as high as $2,700 per ounce by the end of this year.

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In fact, some analysts even forecast gold prices to reach $3,000 per ounce.

Mike McGlone of Bloomberg Intelligence recently stated that, in his view, it's "just a matter of time."

Frank Holmes of U.S.

Global Investors said that $3,000 within the next 12 months is relatively simple, and he even called achieving this price target next year a "trivial event."

However, sometimes logic and outcomes are inverse in this crazy world until a certain moment when they align.

And that moment will come, it's just a matter of time.

So, please be cautious in the short term, as both bullish and bearish views are primarily based on news and market reactions.

Some readers say that all my videos are about what happens after interest rate cuts.

Reiterate my point of view: the logic behind this round of gold's rise is currency reset, and whether it's a rate cut or a rate hike is meaningless, remember it's meaningless, it has missed the best time, it has played itself to death, any policy can only delay its life, what will come will come, gold will eventually rise, the simplest example.

Suppose someone borrows $10 from you, promising to give you $15 in five years, but in reality, he can only earn $1 a year, would you still believe his IOU, can he pay you back?

Unless he starts the printing press to print more money, and there's more money, will your $15 in five years still be $15, maybe it's not even worth $10.

Some people say, considering the inflation and chaos the U.S. is facing now, why hasn't this happened yet?

It's because all of this is related to the long-term dollar hegemony and manipulation, but times have changed.

We are entering a new era, whether it is called the "Great Reset" or something else, the dollar is in a precarious state, and a system built on a mountain of debt cannot withstand the impact of rising interest rates.

Ultimately, there will be a choice between hyperinflation and economic depression, and I believe I will be proven right in the end.

Gold and silver will be the last winners, and all other assets will struggle to find their fair value in a world where price discovery is almost impossible.

Even now, the prices of gold and silver are still far from their true value, and there is a long way to go to reach the goal of curbing inflation.