The economy is just starting to deflate from a bubble, which could swing in gold's favor, this according to Peter Schiff, CEO of Euro Pacific Capital.
"It's just the air coming out of the bubble, that's the volatility. First, the bubble was inflating and everything was going up and now that the bubble is deflating, everything is coming down," Schiff told Kitco News.
On his macroeconomic outlook, Schiff said that despite a more dovish tone from the Federal Reserve, a slower pace of rate hikes will not be enough to keep the growth momentum in the economy.
"I think that the rate hikes that have already taken place are too much for the overleveraged U.S. economy to bear, so I think the Fed ultimately is going to go back to zero. I think it's not just about slowing down the shrinking of the balance sheet, I think they're going to blow it back up even bigger with QE4," he said.
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This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.