The Covid vaccine rollouts and stimulus optimism lifted stock markets this week while gold prices have taken a hit as volatility has begun to wane.
“The markets still believe the Fed that it will be able to contain the inflation problem before it really runs out of control,” says Schiff, adding: “So, it’s the expectation that the Fed is going to fight inflation by raising rates, that’s what’s pressuring gold.”
However, the markets are wrong, the veteran stockbroker says, explaining: “The Fed is not even going to attempt to fight inflation, it’s going to surrender. Inflation is going to win without a fight. And when the markets realize that the Fed is all bark no bite and that inflation is going to be an even bigger problem that is going to be uncontrollable, then the bottom’s going to fall out of the dollar and gold’s going through the roof.”
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