U.S Dollar Strength Causing Havoc; Will the Fed Change Course?

The Fed is likely to change their hawkish stance if dollar strength continues, said Gerald Celente, publisher of the Trends Journal.
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The Fed is likely to change their hawkish stance if dollar strength continues, said Gerald Celente, publisher of the Trends Journal.

"If the [foreign] currencies keep declining, we forecast that the Fed will not raise interest rates four times this year, or three times next year," Celente told Kitco News.

The Fed has at least two more rate hikes this year locked in, Celente added.

"If the Fed pulls back on interest rate increases, that will be much more bullish for gold," he said.

The strength in the U.S. economy has been causing concern for commodities that have fallen on the back of a strong dollar, according to some analysts.

This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.