The Fed, Inflation, and Gold: A Trifecta of Market Forces

[] How Economic Pressure Cookers Fuel Gold’s Long-Term Rally [] [] [] [] Yesterday, [I discussed the recent surge in gold prices]( and how the market’s reaction to economic uncertainty has driven this "safe-haven" asset higher. But as promised, today we’re diving deeper into the forces that have been quietly setting up this gold rally for over a year. A Year in the Making: Why Gold’s Rally Isn’t Just a Blip If you’ve been following along, you’ll know that gold’s current acceleration didn’t come out of nowhere. In fact, it’s been in the works for over a year. So, what’s been brewing behind the scenes? Let’s break it down. 1. The Fed Battles Inflation It’s no secret that the Federal Reserve has been grappling with inflation. But here’s the thing: the Fed has a dual mandate — keep inflation in check and maintain maximum employment. Over the past year, they’ve been caught between a rock and a hard place, raising rates to cool down inflation, but at the same time, risking a slowdown in economic growth. The Fed’s approach has been aggressive, to say the least, with the fastest rate hike campaign in history. But the reality is, these rate hikes have been slow to tame inflation. And as I’ve mentioned before, rate cuts are now back on the table, especially after Powell’s recent shift in tone. The market senses this, and that’s one of the key reasons why gold is surging. When rates go down, gold goes up — simple as that. 2. Inflation’s Persistent Bite Inflation has been more stubborn than many expected, and it’s gnawing away at purchasing power. Despite the Fed’s best efforts, we haven’t seen a significant drop in inflation. Instead, it’s more like a slow burn — a fire that’s still smoldering under the surface. And remember, unless inflation goes negative (which it rarely does), it’s still going up — just slower than before. For savvy investors, this means one thing: a continued flight to gold. Inflation erodes the value of paper money, but gold? It’s tangible, it’s real, and it’s held its value for centuries. That’s why, even when inflation is just simmering, people flock to gold as a hedge. 3. The Long Game: Why This Gold Rally Could Be Just the Beginning Here’s where it gets interesting. It’s not just just about the Fed’s rate decisions or today’s inflation numbers. What we’re seeing is a convergence of long-term trends that could keep gold on the rise for years to come. Think about it: global uncertainty, persistent inflation, and a Fed that’s stuck in a tight spot — all these factors create a perfect storm for gold. And as we look ahead, it’s hard to see any of these forces fading away anytime soon. That’s why I believe this gold rally is more than just a short-term trend. We could be at the start of a multi-year surge in gold prices, driven by factors that aren’t going away overnight. What’s Next? As always, it’s important to keep your eyes on the data and be ready to adjust your strategy as the market evolves. But right now, all signs point to gold being in the early stages of a long-term rally. The >20% rise we’ve seen so far this year is just the start. Stay tuned tomorrow, where I’ll be sharing a long-term gold trade idea you could use to capitalize on the rise I see coming. — Geof Smith P.S. Gold looks like a great long-term play. But the way oil moves makes it PERFECT for targeting weekly income. [Check out my plan for doing that right here.]( [] [] Yesterday, [I discussed the recent surge in gold prices]( and how the market’s reaction to economic uncertainty has driven this "safe-haven" asset higher. But as promised, today we’re diving deeper into the forces that have been quietly setting up this gold rally for over a year. A Year in the Making: Why Gold’s Rally Isn’t Just a Blip If you’ve been following along, you’ll know that gold’s current acceleration didn’t come out of nowhere. In fact, it’s been in the works for over a year. So, what’s been brewing behind the scenes? Let’s break it down. 1. The Fed Battles Inflation It’s no secret that the Federal Reserve has been grappling with inflation. But here’s the thing: the Fed has a dual mandate — keep inflation in check and maintain maximum employment. Over the past year, they’ve been caught between a rock and a hard place, raising rates to cool down inflation, but at the same time, risking a slowdown in economic growth. The Fed’s approach has been aggressive, to say the least, with the fastest rate hike campaign in history. But the reality is, these rate hikes have been slow to tame inflation. And as I’ve mentioned before, rate cuts are now back on the table, especially after Powell’s recent shift in tone. The market senses this, and that’s one of the key reasons why gold is surging. When rates go down, gold goes up — simple as that. 2. Inflation’s Persistent Bite Inflation has been more stubborn than many expected, and it’s gnawing away at purchasing power. Despite the Fed’s best efforts, we haven’t seen a significant drop in inflation. Instead, it’s more like a slow burn — a fire that’s still smoldering under the surface. And remember, unless inflation goes negative (which it rarely does), it’s still going up — just slower than before. For savvy investors, this means one thing: a continued flight to gold. Inflation erodes the value of paper money, but gold? It’s tangible, it’s real, and it’s held its value for centuries. That’s why, even when inflation is just simmering, people flock to gold as a hedge. 3. The Long Game: Why This Gold Rally Could Be Just the Beginning Here’s where it gets interesting. It’s not just just about the Fed’s rate decisions or today’s inflation numbers. What we’re seeing is a convergence of long-term trends that could keep gold on the rise for years to come. Think about it: global uncertainty, persistent inflation, and a Fed that’s stuck in a tight spot — all these factors create a perfect storm for gold. And as we look ahead, it’s hard to see any of these forces fading away anytime soon. That’s why I believe this gold rally is more than just a short-term trend. We could be at the start of a multi-year surge in gold prices, driven by factors that aren’t going away overnight. What’s Next? As always, it’s important to keep your eyes on the data and be ready to adjust your strategy as the market evolves. But right now, all signs point to gold being in the early stages of a long-term rally. The >20% rise we’ve seen so far this year is just the start. Stay tuned tomorrow, where I’ll be sharing a long-term gold trade idea you could use to capitalize on the rise I see coming. — Geof Smith P.S. Gold looks like a great long-term play. But the way oil moves makes it PERFECT for targeting weekly income. [Check out my plan for doing that right here.]( [] ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. Prosperity Pub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Prosperity Pub are for your informational purposes only. Neither Prosperity Pub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Prosperity Pub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit [( for our full Terms and Conditions. [Unsubscribe]( This email was sent to {EMAIL} by Prosperity Pub 101 Marketside Ave, Suite 404 PMB 318, Ponte Vedra, Florida 32081, United States [Prosperity Pub]( [] ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. Prosperity Pub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Prosperity Pub are for your informational purposes only. Neither Prosperity Pub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Prosperity Pub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit [( for our full Terms and Conditions. [Unsubscribe]( This email was sent to {EMAIL} by Prosperity Pub 101 Marketside Ave, Suite 404 PMB 318, Ponte Vedra, Florida 32081, United States [Prosperity Pub](