Hathaway – We Are About To See $100+ Up Days In Gold
July 29, 2012
Today four-decade veteran John Hathaway shocked King World News by predicting that we are about to start seeing $100+ up-days in gold. The prolific manager of the Tocqueville Gold Fund also stated that the Fed is close to acting and they are most likely going to do something, “… on a very big scale.” He warned, “… there is nothing worse than having an activist Fed which is ineffectual. That would just destroy confidence.”
Here is what Hathaway had to say: “Hilsenranth, who everybody knows by now is basically a mouthpiece for the Fed, he went quite extensively into what the Fed is thinking about doing, including a round of quantitative easing, putting nominal interest rates to negative levels, and possibly cutting the interest rate on free reserves.”
John Hathaway continues:
(That last move) would force more of that slack money into the economic system. So generally a green light for more easing, which was well received by the bullion market. We still have to go through the meeting next week. We have to see what the FOMC actually decides to do, but it certainly did raise the expectation that there would be another cycle of easing.
The other thing which I forgot to mention in the first comment, is the Fed is thinking about raising the inflation target….