On June 8, 2021 it was noted that a move up in gold to 1942.50 was expected prior to turning lower. With the Federal Reserve’s discussion today of raising interest rates by the end of 2023, this confirms their intent to strengthen the U.S. Dollar. It also aligns with a peak in the price of gold against the British Pound and Canadian Dollar, as discussed in the Gold post on June 5, 2021. At this point gold is expected to have a repeat performance of October 2012 to December 2015 where significant deflationary forces will drive the price of gold much lower over the next three years.
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