The Fed's Inaction is a Choice

SchiffGold argues the Fed’s inaction is effectively a policy easing for gold: if the Fed holds rates while inflation rises, real rates keep falling and that remains constructive for bullion. The core claim is that the market is focusing too much on near-term rate-cut odds and the oil move, while the bigger driver for gold is the erosion of real yields. The transcript frames the current backdrop as one where nominal rates may stay higher for longer, but inflation is doing the heavy lifting lower in real terms. On that view, even without an actual Fed cut, gold can benefit because the central bank is not offsetting rising inflation with tighter policy. For traders, the message is straightforwardly bullish for XAU over the near term if inflation data continues to outpace policy restraint. The argument hinges on real-rate compression rather than a specific catalyst or price level, so the key risk is that disinflation resumes or markets reprice Fed policy more hawkishly than the speaker expects.