And yet, is Gold finally finding a floor? Aided or not by Fair Value (now 3999), price is fighting to maintain 4000.
We believe gold has bottomed, or is very close. The war is back on and with it, the likely return of US inflation to May’s elevated 4.2%. Or higher, given that both the Strait of Hormuz and the Strait of Bab el-Mandeb are closed to shipping, and the Houthis are striking Saudi Arabian oil tankers.
If you ask anybody in the government, they will tell you the gold has been audited.
It has not.
Not in any meaningful way since at least the 1970s.
The deeper lesson is that money is never merely the object in our pocket or the number on our screen. It is a network of promises, records and expectations about the future.
Today we’ll consider the interaction between long-term interest rates, the Fed’s limited ability to influence them, inflation and the housing market. And because home prices are the biggest concern for many households, we’ll start with a look at the latest changes there. And then look at the Federal Reserve’s likely reaction.
