After slumping below $1,800 earlier last week, gold turned north and ended a four-week losing streak. However, Lobo Tiggre of The Independent Speculator claims that the sales in the gold market are not over yet and that gold will perform well in this environment.
“I’m worried about a short-term ‘waterfall event’”
As you can follow from the news on Cryptokoin.com , Russia’s attack on Ukraine Climbing to the heights with the invasion of gold, the hawkish Fed stepped in and the geopolitical risks were taken for granted, and fell to the level of $1,800. Evaluating market developments and gold’s performance, Lobo Tiggre comments:
My current concern about a short-term ‘waterfall event’ in the broader markets is higher than it has been since 2021. I don’t want to risk any more money right now. I sold everything.
“The fact that the price of gold is still at $1,800 says something”
When it comes to gold, Lobo Tiggre is the one to say that the precious metal is He argues that he is resistant to bond buying and a stronger US dollar, and explains his views as follows:
People are selling stocks, they are buying bonds even though the Fed will. Because fear is in the air. So, against these headwinds, seeing gold still at $1,800 is telling you something.
How does the gold price perform against the dollar?
Talking about the US dollar’s recent performance against gold, Lobo Tiggre says:
The truth is, the dollar just looks strong. The mayor is still in the glue factory, the dirty laundry basket is still the dirty laundry basket. Anyone who goes to the store, who pays rent, knows that their dollar is less valuable, perhaps on the way to being worthless. As you know, gold trades more directly with the dollar and I’m actually a dollar bear.
“Thinking that the Fed can easily lower inflation is a fantasy”
Tiggre’s macroeconomic outlook is dire. He predicts that uncertainty, high inflation and economic slowdown will affect the markets and makes the following predictions:
Nobody really knows what’s going to happen, not even me! We may be in a hyperinflationary recession right now. And to think that the Fed could just, you know, raise rates and cure inflation so easily, I think it’s a fantasy. This will not happen.
