{"id":1584,"date":"2022-07-07T05:03:16","date_gmt":"2022-07-07T05:03:16","guid":{"rendered":"https:\/\/prendergast.net\/?p=1584"},"modified":"2022-07-07T05:03:16","modified_gmt":"2022-07-07T05:03:16","slug":"gold-hasnt-changed-the-price-of-gold-has-changed","status":"publish","type":"post","link":"https:\/\/prendergast.net\/?p=1584","title":{"rendered":"&#8216;Gold hasn&#8217;t changed the price of gold has changed&#8217;"},"content":{"rendered":"<div id='post-thumb'><img alt='' src='https:\/\/markethive.com\/uploads\/david-ogden\/images\/blog_324370.gif' style='height:1px; width:1px' \/><\/div>\n<h1><span style=\"font-size:18pt\"><span style=\"font-family:&quot;Liberation Sans&quot;,sans-serif\"><strong>&#39;Gold hasn&#39;t changed, the price of gold has changed&#39;;<\/strong><\/span><\/span><\/h1>\n<p><iframe loading=\"lazy\" frameborder=\"0\" height=\"350\" src=\"https:\/\/www.youtube.com\/embed\/pBJxe7LiDZU\" title=\"Gold price tanks 2% as Fed may be 'near the peak of its interest rate hikes' - Axel Merk\" width=\"730\"><\/iframe><\/p>\n<p>What the gold price reveals about the macro-tuesday, gold shaved $50 off its market value, falling to nearly $1,760. The 2 percent fall in price reveals that the &quot;perception of the macro environment&quot; has changed, and that &quot;speculators&quot; have sold some of their holdings, suggested Axel Merk, CIO and Founder of Merk Investments.<\/p>\n<p>&quot;Gold hasn&#39;t changed, the price of gold has changed,&quot; he said. &quot;Policymakers don&#39;t have many good options, so we might be in for some pain. In the short-term, people are selling everything.&quot;<\/p>\n<p>Merk spoke with David Lin, Anchor and Producer at Kitco News.<br \/>\n&nbsp;<\/p>\n<p>Recession concerns<\/p>\n<p>&quot;The risk is high&quot; that the U.S. economy is heading for a recession, Merk predicted. He cautioned that while two quarters of negative GDP growth is the benchmark for the definition of a recession, &quot;the official word is done by a committee, and they just take that as a contributing factor. They may not declare a &#39;recession,&#39; because we have low unemployment and other items.&quot;<\/p>\n<p>&quot;The markets are telling us it&#39;s a mess out there,&quot; said Merk. &quot;We were faced with a major supply shock. And when you&#39;re faced with a major supply shock, policymakers make the wrong decisions.&quot;<\/p>\n<p>He went on to explain that &quot;usually recessions are driven by demand, whereas recession, this time around, is driven by supply.&quot;<\/p>\n<p>&quot;Supply shocks are stagflationary,&quot; said Merk. &quot;They cause costs to go up, and growth to go down&hellip; Part of the problem is not just that [the government] wrote [stimulus] checks, but when we have excessive government debt, and people lose confidence that this is going back into balance, that affects consumer behavior as well.&quot;<\/p>\n<p>He went on to suggest that the Fed would continue to tighten its monetary policy, reducing GDP growth, and then would reverse course once inflation numbers look better.<\/p>\n<p>Inflation<\/p>\n<p>When it comes to monetary tightening, The Fed &quot;doesn&#39;t have a choice,&quot; said Merk. &quot;The question is whether they&#39;ll stick with it&hellip; We have to kill off growth, inflation numbers are going to come down, and the Fed may well declare victory. But inflation&hellip; is going to pop back up.&quot;<\/p>\n<p>Merk said that the correct reaction to inflation is &quot;not to write a stimulus check, but to throttle down demand&quot; and improve the supply-side. He proposed that increasing immigration, while removing domestic barriers to oil and nuclear production, would help ease inflation pressures, while increasing GDP.<\/p>\n<p>Over the weekend, U.S. President Joe Biden posted a Tweet, asking U.S. gas stations to &quot;bring down the price you are charging at the pump to reflect the cost you&#39;re paying for the product.&quot; In response, Amazon Founder and Chairman Jeff Bezos tweeted that Biden&#39;s statements are &quot;either straight ahead misdirection or a deep misunderstanding of basic market dynamics.&quot;<\/p>\n<p>Merk said that he agrees with Bezos.<\/p>\n<p><img alt=\"\" src=\"https:\/\/markethive.com\/uploads\/david-ogden\/images\/posted-images\/Sridhar-Ramaswamy.gif\" style=\"height:189px; width:300px\" \/>Ex Google advertising chief: There is &#39;no limit&#39; to tech companies mining your data &#8211; Sridhar Ramaswamy<\/p>\n<p>&quot;The politically attractive thing to say is, &#39;oh it&#39;s the bad guys out there&#39; [causing inflation],&quot; said Merk. &quot;The gas station, right? They&#39;re causing all the problems. People aren&#39;t that stupid. The problems are far more fundamental&hellip; The actual solution is to increase energy production and throttle down demand. There are many things you can do, but they are not politically attractive.&quot;<\/p>\n<p>To find out about Merk&#39;s stagflation hedges, and his forecast for the gold price, watch the above video.<\/p>\n<p>\n&nbsp;<\/p>\n<p>By Kitco News<\/p>\n<p>For Kitco News<\/p>\n<p><a href=\"https:\/\/kms.kinesis.money\/signup?referrer=KM13461268\" style=\"color:#000080; text-decoration:underline\"><span style=\"color:#3b5998\"><span style=\"font-family:Tahoma\"><span style=\"font-size:large\"><u><strong><span style=\"background-color:#ffffff\"><strong>Time to buy Gold and Silver on the dips<\/strong><\/span><\/strong><\/u><\/span><\/span><\/span><\/a><\/p>\n<p>\n&nbsp;<\/p>\n<p><\/p>\n<p>Tim Moseley<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#39;Gold hasn&#39;t changed, the price of gold has changed&#39;; What the gold price reveals about the macro-tuesday, gold shaved $50 off its market value, falling to nearly $1,760. The 2 percent fall in price reveals that the &quot;perception of the macro environment&quot; has changed, and that &quot;speculators&quot; have sold some of their holdings, suggested Axel &hellip; <a href=\"https:\/\/prendergast.net\/?p=1584\" class=\"more-link\">Continue reading <span class=\"screen-reader-text\">&#8216;Gold hasn&#8217;t changed the price of gold has changed&#8217;<\/span> <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[290,291],"_links":{"self":[{"href":"https:\/\/prendergast.net\/index.php?rest_route=\/wp\/v2\/posts\/1584"}],"collection":[{"href":"https:\/\/prendergast.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prendergast.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prendergast.net\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prendergast.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1584"}],"version-history":[{"count":0,"href":"https:\/\/prendergast.net\/index.php?rest_route=\/wp\/v2\/posts\/1584\/revisions"}],"wp:attachment":[{"href":"https:\/\/prendergast.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1584"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prendergast.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1584"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prendergast.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1584"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}