The Fed will hike rates today by either 75 or 100 basis points. After today's hike, there won't be any more rate hikes for at least two months, and that rate hike is expected to only be 50 basis points. In fact, the Fed Funds Futures market is only pricing in two more rate hikes after today, both of them 50 basis points (in September and then November). Afterwards, the Fed Funds Rate will be more likely to decline in 2023 than increase further.
The Fed's problem is that their rate hikes are about to cause America's interest payments on the national debt to exceed the U.S. military budget. The debt has become so large that raising the Fed Funds Rate any further will add greatly to the deficit! The U.S. budget deficit has most likely already seen its lows of the current cycle and is about to begin growing again, which is extremely bullish for gold!
Gold is a forward-looking asset so at some point in the very imminent future we expect the gold price to begin pricing in future rate cuts. Considering the current large managed money gold short position, there is huge upside for gold at its current price, with very limited downside risk.
Augusta Gold (TSX: G) has already filled in its recent gap up! Yesterday, G dipped to a low of $1.43 per share, before bouncing back strongly to close at $1.60 per share! A huge move to the upside for G is imminent!
The Beatty District of Nevada is about to become the #1 most talked about new gold producing region in all of North America!
G owns 100% of the largest past producing gold project in the Beatty District! G also owns 100% of the only fully permitted gold project in the Beatty District!
AngloGold Ashanti (AU) is attempting to consolidate the entire Beatty District, which has some of Nevada's largest near-surface oxide gold deposits!
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. NIA's President has purchased 174,200 shares of G in the open market and intends to buy more shares. This message is meant for informational and educational purposes only and does not provide investment advice.