Gold investors call Fed's inflation bluff

Gold last traded at $1,825 an ounce. Silver at $26.25 an ounce.

NEWS SUMMARY: Precious metal prices rose Wednesday as record high wholesale inflation data contradicted the Fed's latest "transitory" inflation testimony. U.S. stocks traded flat after Fed Chairman Powell said the central bank is not close to altering its easy monetary policies.

Gold investors call Fed's inflation bluff -Fox Business

"Gold investors are taking the wheel, setting the precious metal up for a major rally as investors realize the Federal Reserve is powerless against rising and persistent inflation, according to one strategist.

The precious metal on Thursday was flirting with a sixth straight day of gains, hovering near $1,800 an ounce. It has rallied 8.5% since touching a nine-month low of $1,677.70 an ounce on March 8.

'Markets are basically preparing for the wrong outcome,' said Peter Schiff, CEO and president of Westport, Connecticut-based Euro Pacific Capital.

Schiff says markets are finally starting to come to the conclusion that 'inflation is not transitory,' and is a problem the Federal Reserve will try to solve with rate hikes and tapering....The tide is turning against the Fed's narrative that inflation is transitory.

International Monetary Fund managing director Kristalina Georgieva warned that additional fiscal support could "further fuel inflationary pressures" and cause the Fed to raise rates earlier than expected.

Schiff says the Fed knows inflation isn't transitory and that central bank has been pushing that narrative because it is in 'no position' to fight higher prices as it looks to support the labor market and the economy."