CELENTE: Gold Prices Will Jump When Federal Reserve Lowers Interest Rates
Trend-forecaster said if the Fed raises interest rates by 25 basis points after the next meeting, the economy will sink, and gold prices will also suffer...but
Gold prices are going to jump when the Federal Reserve lowers interest rates because the U.S. dollar’s value is tied to these high rates, Gerald Celente said.
The precious metal was essentially flat on Tuesday at $2,018.90 an ounce as traders wait for tomorrow’s inflation numbers that will give a good indication about the Federal Reserve’s next move. (The DJIA was up 0.004 percent and the tech-heavy Nasdaq was off 0.43 percent.)
The next Federal Reserve meeting is set for 3 May and the data produced tomorrow will loom large. William Northey, from U.S. Bank, told CNBC: “This set of data will certainly provide context for the Federal Reserve to evaluate where they are in that battle.”
Celente said if the Fed raises interest rates by 25 basis points after the next meeting, the economy will sink, and gold prices will also suffer.
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“If they don’t raise interest rates on 3 May, this is the beginning of — you look at the cover of The Trends Journal magazine — the death of the dollar,” he said.
Right now the US dollar and the Eurodollar are in a death struggle. Powell seems to have the upper hand by forcing borrowers from shadow banks to acquire dollars to repay ever increasing debt service. Powell won't stop raising rates until the Eurodollar banks all fail.