While it has moved well away from the all-time highs hit two days ago and Bitcoin has garnered attention, the real bull market for gold is just beginning, according to Peter Schiff, founder of Schiff Gold and Chief Market Strategist at Euro Pacific Asset Management.
This is just the beginning for gold!
cryptokoin.com As you follow from , the shiny metal rose to the top with a strong move. However, it later lost altitude and fell to $2,000. “A lot of people see this as a kind of boom peak, the end of the bull market,” says Peter Schiff. However, according to the ‘gold bug’, this is just the beginning. Schiff says that gold trading above $2,100 for the first time and reaching a new all-time high “is indicative of a new bull market being born, not an old bull market that is dying.” He notes that the market has spent the last few months creating major support for the gold price. In this context, Schiff makes the following statement:
Even in the face of draconian interest rate hikes by the Fed and tough talk of doing whatever it takes to fight inflation, gold has held pretty solid despite what markets perceive as very strong headwinds, a strengthening dollar and rising yields that are normally perceived as a big negative for gold.
The yellow metal sees “overwhelming demand” from investors
Peter Schiff says the precious metal holds up very well. He also notes that he has seen “overwhelming demand” from investors. It also looks at the specific circumstances surrounding Monday’s gold price spike. According to Schiff, this is the work of opportunistic market players in an environment of geopolitical concerns and low liquidity. Based on this, Schiff makes the following comment:
I believe some short-term speculators who bought gold took advantage of the gap. The catalyst was rising geopolitical tensions in the Middle East, and I’m sure there’s more to come. However, I think traders who focused on the very short term wanted to put these profits in their pockets. Because anyone who buys gold is looking at some good profits, especially if they are leveraged.
Massive gains are coming for gold!
Peter Schiff states that currently gold prices are falling again. However, he says he sees the $2,000 level as solid support. In this regard, Schiff makes the following assessment:
Does this mean there is a line below which gold cannot fall below $2,000? No, but I think there will be tremendous buying at every opportunity to buy under $2,000. I think we have cleared a path and tremendous gains are coming.
If you haven’t got it yet, get some!
Peter Schiff also discusses the latest change in interest rate cut expectations. Schiff says he believes the Federal Reserve has made its shot. He also notes that interest rates are on track to fall, no matter what the central bank says. According to Schiff, Wall Street has already started pricing in interest rate cuts as early as the 1st and 2nd quarters of next year. Therefore, according to Wall Street, interest rate hikes are over. He also adds the following to his comments:
If gold couldn’t get below $2,000 while the Fed was raising rates, imagine where it could go now that it’s stopped hiking and is about to cut. (…) Now that we have eliminated this resistance, if you haven’t bought gold yet, buy some. If you have gold but you can buy more, if you don’t think you have a strong enough position you can add to it.
