"Even the Federal Reserve's interest rate hikes couldn't crush gold; where can gold fall when there's a rate cut?"

On Monday in the Asian market, the price of gold once soared to a historical high of $2135 per ounce, only to plummet significantly afterward. In response, the "die-hard bull" on gold, Peter Schiff, stated that this might be a great opportunity to buy gold.

After reaching a historical high, gold was quickly sold off, falling by over $100 and returning to around $2020. Some people view this rapid sell-off as a bearish signal. Peter doesn't think so. He said:

"Now, many people believe this means that gold has reached a top in its recent trend, marking the end of the gold bull market. I think this is just the beginning."

In the past few months, despite the Federal Reserve's relentless interest rate hikes and central bank governors making tough statements, claiming they will do whatever it takes to defeat inflation, the price of gold has remained resilient and has been climbing step by step. The former is usually seen as a significant negative impact on gold.

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So far this year, the price of gold has faced strong resistance at the $2000 mark, with $1900 being a solid support for gold.

Peter indicated that he believes many short-term investors took profits from Monday's sharp rise in gold prices. However, he thinks that $2000 has now become a strong support. He said:

"I believe that as long as the price of gold is below $2000, it will attract a lot of buying. Because the market usually operates in such a way that when resistance is broken, the former resistance becomes support."

So, is it too late to buy gold now?

Peter said he doesn't think so and suggested that it might still be early. Considering inflation, gold is still cheap. In the early 1980s, the price of gold rose from $35 to over $800.He said, "Those with foresight hoarded gold in the late 60s and early 70s because they understood the consequences of the huge deficits and inflation that arose in the 60s and early 70s, and they made a lot of money. Those who did not realize this, those who were trapped in the mindset of the 'trendy 50s' stock market, were destroyed. So, I think our situation is similar to the 1970s, only the situation in the United States is much worse than it was then."

With the U.S. government still having a massive budget deficit amid historically high Treasury yields, Peter believes that the United States is experiencing an unprecedented fiscal crisis. "I think Powell will start the printing press, something we have never seen before, even more than what Bernanke printed in the initial quantitative easing period after the 2008 financial crisis."

Wall Street is convinced that the Federal Reserve's inflation war is over and that interest rates could be cut as early as the first or second quarter of 2024.

Peter pointed out a simple truth: if the price of gold cannot fall below $2,000 even when the Federal Reserve is raising interest rates, imagine where the price of gold will go when the Federal Reserve stops raising rates and is about to cut them, especially when the market accepts the reality that inflation has not disappeared.

Peter said that he believes the Federal Reserve's approach to dealing with this imminent financial crisis will be the same as its approach to the 2008 crisis, the internet crisis, and every crisis since then. That is, by printing money and creating inflation. Peter added:

"At that time, the dollar will hit rock bottom. Inflation will soar again, and gold will lead the rally. So, it is indeed the time now, if you haven't bought gold, you should buy some."