Investors and the media interpreted those remarks as a signal that “the race is on”. Someone said that Powell’s remarks “opened the door to a possible interest rate cut”.
If the outcome is a sharp economic slowdown or recession, Treasury yields will fall significantly, and that would propel gold to $4,000+ and silver to $60+.
The XAU -- a popular index fund containing publicly traded companies mining for both gold and silver -- began a run higher 18 months ago after going nowhere for the decade before.
