Uncertain Economic Conditions

Gold's Post-FOMC Rally Has Analysts Bullish, and That's Not Even the Best Part

It’s no secret that the Fed’s promise to wait at least two years until a rate cut is likely going to boost precious metals prices. But what many are missing is the underlying message being broadcast to those paying attention.

“Analysts often get bogged down by the numbers because that’s their job,” said Genesis Gold Group co-founder Jonathan Rose. “But the real takeaway here is that confidence in the Fed’s ability to fix the economy is dropping. Many of our newest customers say they don’t trust the central banks calling the shots, which is why they’re moving to gold and silver.”

According to Anna Golubova from Kitco, the Fed’s rate projections are meaningless:

After largely ignoring the Federal Reserve’s first pause in fifteen months, gold is steady in the face of the central bank’s hawkish warning of two more rate hikes. Analysts are bullish on the precious metal, questioning the Fed’s dot plot projections and forecasting gold to rise above $2,000 an ounce on a sustained basis.

As the Fed kept rates in a range of 5% to 5.25% on Wednesday following ten consecutive increases, Federal Reserve Chair Jerome Powell confirmed that the median dot plot saw at least two more 25-bps rate hikes this year. Some analysts have criticized the contrasting views of the Fed officials, noting that these assumptions are often unreliable.

“A year ago today, the FOMC’s median dot for 2023 was near 3.75%, which serves as a reminder that these rate forecasts have little bearing on future rate decisions,” said TD Securities senior commodity strategist Daniel Ghali.

One pause in rate hikes announced at the same time that Jerome Powell projected two more hikes later this year demonstrates why investors believe the Fed is flying blind. For those with gold and silver backing their self-directed IRAs, this is all good news. For those who are considering rollover or transfer moves on their current retirement accounts, this week should be the last push needed to make them pull the trigger.

“When they say, ‘buy the dip,’ they’re talking about times such as now,” Rose continued. “This week, we’ve seen our highest volumes of retirement transfers and rollovers since the banking collapses started, and I would argue that the current situation is more impactful for long-term investments than even the banks falling.”

Contact Genesis Gold Group and receive the Definitive Gold Guide absolutely free. Then, find out how a self-directed IRA backed by physical precious metals may be your best move during today’s financial volatility.

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