Trader Stef: Monetary Velocity and Inflation Expectations Will Push Gold Past $3,000

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Tom welcomes Trader Stef, a new guest to the show. Stef has a background in the investment banking industry, and today she regularly posts her technical analysis on her website and Twitter.

Stef discusses the Fed's decision to leave interest rates low until 2023. They are also considering eliminating the 2% interest rate target, allowing for higher inflation rates. In nominal terms, we are already at negative interest rates, and countries in Europe have been negative for some time. Officially the Fed doesn't want to enter NIRP territory, but factoring inflation, then we are already at those levels.

The velocity of money is a measure of how fast dollars are changing hands in the real economy. When money velocity is this low, significant inflation is unlikely to appear.

She discusses breaking the all-time high in gold and what that means for this secular bull market. Stef gives us Fibonacci upside targets for gold and silver. She points out that we are overbought, but we could run farther and farther than investors might think possible. There are additional Fibonacci levels she believes may act as resistance levels in this bull market.

She says, "The longer a market runs hot and higher, the harder the fall or chop will be no matter the type of asset. Don't go chasing strength; consider taking some profits and re-invest your position."

Guest Links:
Twitter: https://twitter.com/TraderStef
YouTube: https://www.youtube.com/user/TraderStef
Website: https://traderstef.com

Time Stamp References:
0:40 - Covid strains and risk of a comeback.
4:25 - Real vs nominal interest rates.
8:15 - NIRP/ZIRP and Feds official policy.
13:00 - Money Velocity, US Dollar, and MZM
21:15 - Hot markets and how far they can run.
23:10 - Silver expectations.
29:15 - Sell-off risk during next market correction.

#TraderStef #Gold #Silver #Inflation