When I can earn 5-6% on a certificate of deposit (CD), why would I want to own gold? Inflation is still here. If the dollar drops, then I want to own gold.
Except for energy price, inflation in the month of August should fall. I still expect a pause in interest rate by the Federal Reserve in its meeting on 20th September.
I get so many people saying, "Ira, when is the time to buy gold?" It isn't yet. It'll be the time when the Fed says that it's through with the rate hikes. The market is saying the Fed's not done.
The gold market is still under pressure because the dollar is up another 50 points. In the stock indices, we woke up and saw that Moody's had downgraded as many as 10 banks.
We are getting a little bit of a bounce in the gold. Gold had a reasonable range but under pressure most of the day. Bonds and notes continue to add yield.
Long term gold will rise as the greenback sees sustained value erosion in Asian trade. Short term corrections up to ten percent will be part and parcel of the long term rally.
Gold edged up as Fitch Ratings’ move to strip the U.S. of its top-tier sovereign credit grade triggered risk-off sentiment, sending global stocks falling.
