– Last week’s surprisingly hawkish tone from the Federal Reserve may have driven the speculative hot money out of the market.
In an interview with Kitco News, Peter Grosskopf, chief executive officer of Sprott Inc, which manages more than $17 billion, said that he is not paying much attention to the latest projections from the U.S.
Government support and rising unemployment benefits are forcing companies to raise wages to attract workers.
He explained that growth has been strong since the start of the year as consumers unleash pent-up demand caused by the COVID-19 restriction.
Although gold prices will continue to be sensitive to rising interest rate expectations, Grosskopf said investors need to pay closer attention to the bigger picture: real interest rates.
We are at peak equity markets, peak debt, the Fed’s balance sheet is at a record.