Kitco News, Released on 7/10/20

U.S. monetary policy and government stimulus measures will continue to support gold prices above $1,800 an ounce even if the Federal Reserve doesn’t use any type of yield curve control measures.

Expectations are growing for the U.S. central bank to launch a program that will cap low-end interest rate yields as early as September; however, Axel Merk, president and chief investment officer at Merk Investments, said that this type of program would send the wrong signal to financial markets.

“Yield curve control, I think is a rather stupid concept, if I could use that eloquent word, because then you draw a red line and when you draw a red line, you’re inviting the markets for a fight,” he said.

Axel Merk is the Founder, President, Portfolio Manager, and CIO at Merk Investments LLC. He is an expert on qualitative research and macroeconomic trends. Mr. Merk is also an expert on macro trends, hard money, international investing, and on building sustainable wealth, and he is a pioneer in the use of strategic currency investing to seek diversification. He is a speaker and author on topics ranging from the economy, gold, and currencies to sustainable wealth and personal finance, as well as a regular guest and contributor to the business media around the world. Mr. Merk is an Author of the book Sustainable Wealth: Achieve Financial Security in a Volatile World of Debt and Consumption.

  gold, yield curve control