Powell Blinks: Wall Street and Main Street Now Betting Big on Gold as Rate Cuts Loom
For the past four months, gold’s been bouncing around in a trading range like a caged animal, waiting for the right moment to break free. On Friday, we may have just seen the spark.
At the Federal Reserve’s annual symposium, Chair Jerome Powell admitted what many of us have known all along: the so-called “restrictive policy” isn’t sustainable. Inflation is still rising, growth is slowing, and the Fed has backed itself into a corner. Powell all but confirmed that a rate cut could be coming as early as September.
His exact words: “With policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance.”
Translation? They’ve lost control, and their only tool left is cutting rates—and by extension, printing more money.
Gold Responds Immediately
As soon as Powell’s comments hit the wires, gold jumped 1% and held strong. That’s not just a knee-jerk reaction; that’s the market telling you where things are headed. Naeem Aslam of Zaye Capital called Powell’s speech a “real eye-opener,” and said the dip in gold we saw recently was nothing more than a buying opportunity.
Ole Hansen from Saxo Bank put it plainly: the dollar is weakening, the yield curve is steepening, and this is exactly the kind of environment where gold shines. He believes it’s hard to imagine prices not being higher in the coming weeks.
Christopher Vecchio from Tastylive echoed the sentiment, saying gold is “ready to pop” as the Fed prepares to ease rates.
What the Experts and Everyday Folks Are Saying
Kitco’s weekly survey of analysts showed zero bearish votes this time. Let that sink in—not one professional betting against gold next week. Sixty-two percent said they’re bullish, and the rest are neutral.
On Main Street, regular investors are also leaning heavily toward gold. Nearly 60% of retail traders expect prices to climb, while less than 20% see them falling.
That’s unity you don’t see often: Wall Street and Main Street both stacking up on the yellow metal.
Long-Term Outlook: Higher Highs on the Horizon
Michael Brown at Pepperstone raised an interesting point: is this September cut a one-off move or the start of a full-blown easing cycle? Either way, the writing is on the wall. President Trump has once again taken to blasting the Fed, further undermining the illusion of “independence” at the central bank. That political pressure only adds fuel to the fire for hard assets like gold and silver.
Brown believes new all-time highs are likely before the year is out. And I agree—this isn’t just about a short-term rally. This is about a crumbling system.
What This Means for You
Here’s the reality: every time the Fed cuts rates, your dollars lose more buying power. It’s like owning a car that loses value every single time you turn the key. The government and central banks aren’t going to protect your wealth—you have to do that yourself.
Gold and silver are the ultimate insurance policy. They’re not just investments; they’re lifeboats in a financial system that’s taking on water fast.
Take Action Now
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The storm is coming. Make sure you’re holding gold and silver before it hits.
