“Do Not Be Fooled, There is No Economic Recovery”
Peter Schiff, CEO of Euro Pacific Capital, advises that savvy investors should not be fooled by reports of any economic recovery. And the same investors should continue to buy Gold despite the pullback.
“I’m certain that all this talk about a recovery is wrong,” Mr. Schiff said. “The recovery is an illusion, it’s just another gigantic bubble.”
Peter Schiff believes that economic data has “actually gotten a lot worse since the Fed did not raise rates in September.”
He also said once you factor in the uncertainty of the very contentious presidential election, there’s no way the central bank will shock markets with an interest-rate hike, no matter how much advance warning the Fed offers.
“Everybody wants to go to Heaven, but nobody wants to Die, and that is the problem,” said Mr. Schiff. “We are never going to have a real recovery until we kill this phony recovery, but for political reasons, that’s not going to happen.”
Peter Schiff has long been a critic of the Fed’s policies, and is perennially Bullish on Gold.
Gold price steadied on Wednesday after falling to 3-month lows Tuesday in a sell-off triggered by speculative selling and a break of Key technical support levels, which pushed the precious Yellow metal below the Key 1,300 oz mark.
Spot Gold was up 0.3% at 1,271.36 Wednesday, close to the low of 1,266.33 hit Tuesday when the price fell 3.3%, its biggest daily loss in 3 years.
Traders said a generally stronger USD during September had kept Gold under pressure and that, combined with a break below the 100-Day MA at 1,310, accelerated losses as funds reversed bets on higher prices.
A break of the 200-Day MA at 1,258 could spark another sell-off which could see the further losses toward 1,248 a Fibo retracement mark.
The stronger USD, a break of Key technical levels, speculative positioning which was very long, weak physical Chinese and Indian demand all contributed.
A lot of speculators headed for the exits Tuesday a quiet market.
A higher Buck makes Dollar-denominated Gold more expensive for holders of other currencies.
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