The Fed’s Inaction is a Green Light for Gold

Peter Schiff argues that the Federal Reserve's recent inaction on hiking interest rates amidst persistent inflation is bullish for gold and bearish for the US dollar. He emphasizes that despite inflation pressures, the Fed appears behind the curve, suggesting real interest rates remain negative or too low, which historically supports higher gold prices as a hedge. Schiff highlights that many traders overlook the key driver of gold demand—real interest rates rather than nominal rates or headline inflation. With the Fed’s inability or unwillingness to aggressively tighten monetary policy, the inflationary environment persists, thereby fueling gold’s appeal as a safe haven and store of value.