Market analyst Mike Maharrey stated that gold, which fell from $2341 earlier this week, hit a low of $2301 on Friday (June 14), proving that mainstream investors are in trouble. He warned that the collapse of the U.S. economy is just a matter of time. But he believes that no matter how many dots Fed officials mark on the chart, the fundamentals currently support gold and silver.

(Source: FX168)

The big news this week was the release of a new dot plot forecasting the direction of interest rate policy, which is vastly different from a few months ago. Just a few months ago, the Federal Open Market Committee (FOMC) was confident that three rate cuts were the appropriate trajectory for monetary policy, but a lot has changed in two and a half months.

Now, the FOMC predicts only one rate cut this year.

(Source: GoldSeek)

Mike pointed out that the mainstream consensus in the market is to sell gold and silver as long as Powell and others make hawkish remarks or good economic data shows that the economy is still growing. He explained: "This is because people mistakenly believe that a strong economy will cause inflation. The fact is that monetary creation leads to price inflation."

When the Fed turns dovish or U.S. Consumer Price Index (CPI) data shows that inflation may be cooling, mainstream investors will buy gold and silver, which gives hope for rate cuts.

This week, the market received two important messages, the Fed is maintaining a tough stance, but the May CPI report shows that inflation is falling.

"This seems to have put mainstream investors in a predicament," Mike emphasized.

The price of gold and silver reflect this, fluctuating back and forth, with little change on Wednesday.

On Thursday, the prices of gold and silver plummeted, with gold falling about $15/ounce. Later, news came that the May Producer Price Index (PPI) rose far less than expected, which inhibited selling.

Mike reminded, "It's better not to make impulsive actions because of the latest developments on social media, and instead think wisely about potential changes."

(Source: GoldSeek)

He mentioned that the reality is that the Fed is in a dilemma and hasn't done enough to curb rising prices.

But the Fed has already made its monetary policy "tight enough" to break the debt-ridden, bubble economy. It has triggered a financial crisis, and this crisis is still brewing.

"The world is still mired in debt. Governments continue to borrow and consume, and there are still various misguided investments in the economy," he said.

"The collapse of the economy is just a matter of time, and by then the market will get the rate cuts they urgently hope for, even though inflation is still continuing."

"Of course, this means that prices will rise further."

He concluded that no matter how many dots Fed officials mark on the chart, the fundamentals currently support gold and silver.