The new statewide sales tax exemption on bullion coins, bars, or rounds (minted of gold or silver, but also platinum, palladium, or copper) takes formal effect on Saturday, March 23rd.
Haggith discussed his anticipation of a gold price dip despite favorable conditions, attributing it to concerning CPI and inflation data potentially delaying Fed rate cuts.
The Fed knows higher rates will eventually cause the economy to collapse. It also knows that inflation hasn’t been beat. So, it faces a choice: higher inflation or an economic crisis.
By the time Powell realizes the recent increases in inflation are not “transitory,” we could all be back in a world of hurt because inflation will keep rising for a while even after the Fed realizes it needs to tighten again.
Moriarty notes surprising discrepancies between market sentiment and price movements and predicts a sustained rally in gold and significant gains in gold shares over the next 6-7 months.
Many believed that the Fed would have reduced interest rates to where US Treasuries would not be devalued. Nothing has changed, nor is anything about to change anytime soon.
The Fed managed to plug one hole in the dam with this bailout program. But with the Bank Term Funding Program (BTFP) a thing of the past, we could start to see more leaks and cracks.