Not only Fed officials, financial experts around the world have recently made shocking predictions. JP Morgan CEO Jamie Dimon warned on Bloomberg TV that interest rates in the US could increase from 5.5% to 7%, the highest level in 33 years. This means, the Fed will have to raise a total of 150 percentage points more.
He said that public spending in the US is currently at a record level and the budget deficit is also very high. Therefore, inflation will be high and will force interest rates to increase.
If US interest rates stay at a record high and persist, gold may continue to decline even though the peak consumption season in Asia is coming.