Trey Reik – A Perfect Storm Of Events Is Going To Ignite The Gold Price

Monday, April 1, 2019
By Paul Martin
April 01, 2019

As we kickoff the first trading week in April, one of the greats in the business just warned that a perfect storm of events is going to ignite the gold price.

Busy Week
By Trey Reik, Senior Portfolio Manager, Sprott USA
April 1 (King World News) – This past week witnessed an unusually rich sequence of gold supportive events. Indeed, four successive developments came so fast and furious that we expect strong performance in the gold complex in coming weeks as investors have time to process the significance of this recent news.

1) The Fed Hits the Ejector Seat
First, Fed Chairman Powell’s press conference following the 3/20/19 Federal Open Market Committee (FOMC) meeting proved far more dovish than consensus expectations. Mr. Powell confirmed that additional rate hikes are now completely off the table for 2019, and he even seemed a touch pitiable in suggesting one hike might still be in the cards for 2020. As recently as 12/16/19, Chair Powell had defiantly asserted the Fed’s balance sheet runoff was, “working well,” “on autopilot,” and “not subject to review.” Just three months later, with the Fed’s balance sheet still measuring an absurd $4.0 trillion, the FOMC is now confirming that balance sheet runoff will cease this year.

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