Trying to understand this current period is not particularly easy. We appear to have entered a period of market, political and global geopolitical turmoil. That had us look at long term cycles.
The market action did not mean much, the real market mover comes on Friday morning when the job data comes out. In the gold market, I am in the bear camp..
The current state of panic among traders and investors indicates that traders are betting on 75bps interest rate hike in November, December, and January meetings. I do not think so.
The current bearish phase (in gold) is a passing phase which can last for another six months to nine months at the most. Gold is still the best hedge for long term.
In regards to rate hikes specifically, I’ve asked investors to think about a scenario where Fed boss Jay Powell has watched the US government become the main driver of US inflation..
Central Banks are saying they are going to fight inflation, taking the lead from the head central bank...the Federal Reserve. Powell will not blink at the next meeting.
