Why Gold Prices Just Fell amid inflation.

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Gold prices just fell like a rock this ultimate month — from $2050 in march to $1753 today. Something like $300 so far, and they’re still falling. This isn’t enough to ruin the market, but it’s enough that I’ve already been receiving emails from people asking what’s happening.

On the economy, US treasury said:

“The U.S. economy has continued to recover, but economic activity appears to have decelerated somewhat during the first half of this year. After rising at an annual rate of 2-1/2 percent in the second half of 2022, real gross domestic product (GDP) increased at a 2 percent pace in the first quarter of 2022, and available indicators point to a still-smaller gain in the second quarter.”

https://home.treasury.gov/

Of course, I’ve made it clear over and over what I think about the economy. There is no recovery. The attempts to “fix” the economy have miserably failed. The labor market is worse than before, we have more debt than ever before, malinvestment is rampant, and it will take another decade to sort out all of the harm the “stimulus” of the Fed has created — at least.

Why Gold price Is Failing Amid High Inflation?

Quick facts:

  • Dollar is strong, this makes the precious metal priced in dollars more expensive for buyers using other currencies.
  • Interest rates rise: gold, which pays no interest, is less atractive.
  • Gold is right priced today: key support at $1680 and the first level of support at $1720 an ounce.

FED keep saying they should worry about being fiscally sustainable and not running deficits too high, but that they should also stimulate the economy. Of course, this is just typical Keynesian doublespeak, and is meaningless.

It’s impossible to predict the short-term impacts to the economy, because we live in a manipulated economy. This is one reason I say in almost every article that my gold investing strategy is incredibly simple. This essentially guarantees that over time, I’ll have a lot of gold and silver, and won’t have to worry about timing the market. Over the next 10 years, this is the simplest way to become prepared for economic catastrophe.

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