There is little the Fed can do to bring down inflation and that will be good for gold - MarketGauge's Mish Schneider

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While it has been 40 years since consumers have seen inflation this high, Schneider noted that what makes the current environment different from the 1970s and 1980s is that inflation has become a global problem. It has become much bigger than the Federal Reserve and its monetary policies can handle, she added.

Looking at gold prices, Schneider said that she can see the precious metal pushing to $2,000 an ounce this year and potentially reaching $5,000 an ounce in the next couple of years as the world sees a prolonged period of stagflation, an environment of low growth and high inflation. In all the chaos, rising consumer prices remain a significant focus. The Federal Reserve has taken a hard line in its attempt to bring inflation down to 2%, with Chair Jerome Powell reaffirming his stance that the central bank is committed to"getting the job done."

At the same time, global demand for raw commodities, specifical food and energy, is expected to remain elevated through the year, which will create some pressure on domestic markets. She added that this environment remains bullish for gold.

Source: Loan Digest (loandigest.net)

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