The decline followed stronger inflation readings that normally raise expectations for tighter monetary policy and higher yields, increasing the appeal of income-producing assets over gold.
Schiff argues that markets are assuming the Federal Reserve can tighten policy enough to restore price stability without creating wider financial stress.
His projected risk is that higher rates reduce the market value of existing mortgages and bonds, making losses harder to manage if institutions must sell assets to meet withdrawals or other funding needs. Schiff believes that pressure could eventually push the Fed toward rate cuts or renewed large-scale asset purchases, although no such policy decision has been announced.
The gold outlook remains conditional. Gold has traded between about $4,090 and $4,207 since September 29, with repeated tests but no sustained break beyond either boundary. A move above $4,207 could expose $4,300, while continued consolidation would preserve the range and a confirmed break below $4,090 could expose $3,990. Schiff has not supplied a specific numerical price target; his broader argument depends on persistent inflation and financial pressure eventually limiting the Fed’s response.