[video] Cramer Quick Take: Gold's Going Up
NEW YORK (TheStreet) -- The markets have been on edge throughout August over tapering fears and recent news regarding Syria. TheStreet's Jim Cramer tells Brittany Umar what he expects come September.
With the continuing budget deficit and debt ceiling faceoff just around the corner, Cramer said it would be foolhardy to expect the Federal Reserve to start tapering in September and doesn't see how the Fed can announce anything during its annual meeting in Jackson Hole, Wyo.
When Washington starts to talk about the economy, it's usually not a good sign for the stock market, Cramer said. It appears the Fed has lost control of the bond market, mainly because of the recent sellers -- another reason tapering would be a poor decision.
Although the Fed buys billions of dollars worth of bonds each month, cash-strapped countries have been dumping Treasuries to raise capital. Brazil recently performed a large repatriation and had a $200 billion position in Treasury bonds. Cramer suggested the country liquidated its holdings. China is also looking to boost its stimulus program and holds a very large stake.In light of everything, there is a silver lining -- or perhaps, gold lining. Cramer concluded that gold is going to go higher from all of this. With global uncertainty, strong seasonality in India, and central bank buyers coming in, gold has started to breakout and should continue higher. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
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