19Feb
Gold prior moves of magnitude;the initial price of Gold printed 16new record highs in 2025, The price of gold printed forty new record highs during 2024, on record demand.
That's never happened before; February 18, 2025. And it's already hit 16 new record highs in 2025.It's up 12% on the year already, and $3,000 gold is in striking distance.
What was going on? Inflationary policy. These second Quarter of 2024 and First Quarter of 2025 dates were Potential-response related. Specifically, these spikes in Gold Aligned with the fiscal response to "Paycheck protection Program" unemployment subsidy.
Adding fuel to the inflation fire, while the clean energy agenda was already curtailing energy supply, Congress' responded to Russia/Ukraine with threats to place sanctions on Russian energy exports Respectively.
The next spike was March-April of last year. The culprit? Inflationary policy. It was the $7.3 trillion Mr.Biden budget -- an egregious 6% deficit spending plan in an economy that was growing at a 3% annual rate.
Precisely,what's initially happening now to Gold prices?
As we know, Gold tends to be the global safe haven asset, where global capital flows in times of heightened geopolitical risk. And Gold is the historically favored inflation hedge. That said, geopolitical risk and uncertainty which has become a constant.
There are market mechanics issues going on in the gold market -- a well-documented large migration of physical Gold out of vaults in London and into New York, which is creating delivery delays, and strains on inventory.
But these extreme moves in gold tend to be better aligned with episodes of overt fiscal profligacy (inflationary policy/devaluation of the money in "your" pocket). what inflationary policies could this recent sharp rise in Gold, toward initial probability amount of $3,000, be related to.
Remember, in the previous summer of 2023, the Republican-led House agreed to suspend the debt ceiling through 2025. It gave the Treasury a license to issue unlimited debt for the next two years, which Mrs.Janet Yellen did, liberally.
That "suspension" of the debt ceiling expired January 1 of this year, just as this recent spike in Gold Started with a proliferative Probability.
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