If inflation, which is terribly mis-measured, stays at present levels as measured by the fraudulent CPI, and interest rates continue to go higher, gold will absolutely, positively go down.
Inflation (an increase in the money supply, printing, an increase in the Fed's balance sheet, or however you more properly define it) really doesn't have anything to do with the, as you say terribly mismanaged, CPI. So the CPI can do whatever it wants, it doesn't mean gold is absolutely going to go down.
Gold's move is more directly related to currencies and what the governments behind them are doing to devalue them.
Consequently, unless interest rates rise faster than whatever the governments are doing to devalue their currencies, I don't see gold doing anything but going up. |
