In this week’s video, Gwen talks about the Federal Reserve’s response to red hot headline inflation in May and how it has boosted the odds that central bankers will tighten us into a recession…and that rates will therefore start coming down before the end of next year.

What to take away from all of this?

That recession is likely and that rate hikes will not likely last as long or take rates as high as the Fed currently predicts (and as the market was predicting just a few weeks ago).

All of this will still take time to play out. While it does, the ride will be bumpy for base metals, no matter bullish medium-term fundamentals. Gold has done well through all of this so far, some days jumping on safe-haven buying and other days falling when the stock market bulls get the upper or the dollar really rises.

All of that will continue until we get through this storm – and while things remain very wild, I actually think the path forward got a touch clearer over the last two weeks.

Courtesy of The Resource Maven