Merk Says Gold Bull Market Holds Despite Warsh's Hawkish Fed, With 2% Inflation Still Years Away
Updated
Updated · Kitco NEWS · Jun 19
Merk Says Gold Bull Market Holds Despite Warsh's Hawkish Fed, With 2% Inflation Still Years Away
1 articles · Updated · Kitco NEWS · Jun 19
Summary
Axel Merk said gold’s long-term bull market remains intact even after new Fed Chair Kevin Warsh’s hawkish debut pushed market expectations for future rate increases higher.
Warsh’s tougher inflation stance could pressure gold near term, Merk said, but less forward guidance and fewer policy surprises should reduce volatility and strengthen the market’s foundation.
Unsustainable U.S. deficits and rising government debt remain the bigger support for gold, he argued, shifting the investment case away from day-to-day rate forecasts and bond-yield moves.
Merk added that restoring price stability will take years—he noted even Paul Volcker did not quickly bring inflation to 2%—while geopolitical risks and the recent gold-oil link should fade over time.