He considers last week's meeting between President Biden, Fed Chair Powell and Treasury Secretary Yellen "Kabuki theater" where the Fed essentially took the blame if inflation didn't come down.
Hathaway sees two possible paths here, both of which are good for gold. Either the economy will slow down due to more aggressive policies aimed at curbing inflation, or the Fed will give in and retreat, giving inflation further room to run amok. Gold is well prepared for any of these scenarios. Hathaway sees a reasonable price for gold at $2,200 an ounce by the end of this summer.
Hathaway also believes that gold sentiment is artificially influenced by the media, which tends to view financial markets with rose-colored glasses, which in turn discourages people from being interested in investing in the yellow precious metal. "The media is doing a good job of dissuading people from buying gold for the future."