Hartnett: Blowback Against Flood Of Illegal Immigrants Will Spark Next Inflation Crisis

One week ago, BofA's Michael Hartnett looked at the growing possibility not just of a Trump victory but of a Republican sweep on Nov 5 (which according to Polymarket is now just shy of 50%, up from 33% on Oct 17), and found that while much of th e market is validating a "Red Sweep" trader, two assets remained outliers: namely gold and oil (the former should be lower, the latter much higher based on history). Here is Hartnett:

Gold Price: gold at $2720/oz, an all-time high and significantly above prior historic peaks of $2000/oz in 2020, $1900/oz in 2011.

The gold bull is driven by policy & inflation: 2020s are a decade of US & global fiscal excess, 2020s are a decade of tech & trade tariffs & protectionism

Pointing to the Fed determination to slash real interest rates in coming quarters, Hartnett said that investors simply need to hedge inflation and threat of US dollar debasement (Bitcoin price all-time high of $75k) would corroborate. The BofA strategist concludes that "gold is heading well above $3000/oz."