RE:The US Fed is backing off on tightening
The bottom line remains the same. Swing traders buying gold get it that the Fed is going to lose the inflation battle overall, but know mainstream investors, or the retail masses don't get it yet.
The retail masses that don't get it yet are the real to come panic buyers of gold that will drive gold to $3000 and higher. They just don't get it currently that inflation is really here to stay and is going to get much worse . They are locked into the Fed narrative the inflation battle is alive and still will be won. Not true - but they believe in this nonetheless for now.
On the other hand swing buyers do get it that inflation is here to stay and continue to purchase it as an inflation hedge. Largely behind the current upswing in the price of late.They also get the current Fed-speak talking out both sides of their mouths factor in play and are taking advantage of their ever change-up narratives.
So they buy and sell and profit in the meantime before the masses do and will finally get a clue and then come pouring in crashing the gate all in a panic to buy gold later.
Buying gold later that is, in panic mode, after the Fed loses all shadow of credibility with the gullible hordes that they ever had a hope of fighting inflation without completely tanking the economy to do it to begin with.
Gold could be primed for profit taking soon by the swing crowd over whatever the Fed does and or says next.
Its going to be a rocky road up and down for the POG until retail finally gets it firmly into their heads the Fed is and has been playing them all along.