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Gold smashes will end when inflation wrests control of the narrative from taper talk


Seeking Alpha/AustroLib/8-9-2021

graphic image of a cannon firing a cannonball

“This is not the first time this has happened, but I don’t believe these smashes can continue this way for much longer. I say this because once the Fed actually does start to taper its $120B monthly bond purchases, markets will expect price inflation to start being tamed. But it won’t be. When traders realize that tapering isn’t helping tame price inflation, the tables could be turned on the current narrative. The time is nigh when price inflation starts to lead the gold and silver markets instead of the paradigm we are currently in, in which monetary policy prognosticators try to front-run gold and silver on any possible news of tightening.”

USAGOLD note: An interesting take on the Fed dilemma on tapering and rates at the link …… Inflation, he says, will begin leading the narrative. And that is likely to occur, to borrow a phrase, in two ways: gradually then suddenly.

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