Gold Prices Surge Amid Economic Factors, Says Peter Schiff

According to Odaily, economist and gold advocate Peter Schiff highlighted the significant rise in gold prices this week through multiple posts on X. On Friday, Schiff stated, 'Gold is experiencing one of its best years ever, with gains exceeding 26%, poised to surpass the 32% increase seen in 2007.' This surge follows the Federal Reserve's 50 basis point rate cut on Wednesday, the first such reduction in over four years. Schiff also mentioned that gold 'is set to have its best year since 1979, when prices soared by 126%.' Schiff pointed out that despite gold's strong performance, many traders quickly sell off gold mining stocks at the slightest dip in prices. 'If a $40 increase in gold prices leads to a 2% rise in gold mining stocks, a $5 drop can result in losing half of those gains,' he explained. He further added, 'So far in 2024, gold prices have risen by more than $540, marking the largest dollar increase in history. This has occurred in a year marked by soaring national debt and the Federal Reserve cutting already low interest rates, despite inflation rates being well above the 2% target and trending upwards. This is no coincidence.'