Gold Spikes Back Above $1800 After Bostic's Downbeat Comments

  • Written by Zero Hedge
  • Published in Economics
Gold Spikes Back Above $1800 After Bostic's Downbeat Comments Tyler Durden Tue, 07/07/2020 - 10:11

Is 'bad' news, good news for precious metals?

Raphael Bostic diverged from Powell's more optimistic outlook, warning this morning that he is seeing signs of a "levelling off" of the US economy's recovery.

The Atlanta Fed chief told the Financial Times:

"There are a couple of things that we are seeing and some of them are troubling and might suggest that the trajectory of this recovery is going to be a bit bumpier than it might otherwise."

Bostic added that he was "trying to figure out whether this levelling off is something that is a more sustained pattern, or just a pause."

"Given that possibility, to start thinking about what the next relief package should look like."

His comments appeared to line up with a renewed bid for gold, sending futures quickly back above $1800 as perhaps this means a renewed easing effort by The Fed (whose balance sheet has also leveled out in recent weeks)...

Gold futures hit $1809.70 as we publish - a new cycle high.

Silver is also spiking...

As Ron Paul recently wrote, with lending facilities providing to the Federal Reserve the ability to give money directly to businesses and governments, the Fed is now just one step away from implementing Ben Bernanke’s infamous suggestion that, if all else fails, the Fed can drop money from a helicopter. These interventions will not save the economy. Instead, they will make the inevitable crash more painful.

The next crash can bring about the end of the fiat monetary system. The question is not if the current monetary...

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