Core Viewpoint - Greenlight Capital's David Einhorn believes the Federal Reserve will implement more interest rate cuts this year than currently anticipated, which boosts his confidence in gold investments [1][2]. Interest Rate Expectations - Traders are pricing in over an 88% chance of two quarter percentage point cuts by the end of the year, despite a slight decrease in rate cut expectations following a strong January jobs report [1]. - Einhorn argues that the market's interpretation of the jobs figures as a reason to avoid rate cuts is incorrect, suggesting that the actual number of cuts could exceed current expectations [2]. Fed Leadership Influence - Einhorn anticipates that Kevin Warsh, nominated by President Trump to succeed Jerome Powell as Fed chair, will advocate for rate cuts even if the economy appears strong [3]. - He believes Warsh will focus on productivity arguments to persuade the committee to cut rates [3]. Gold Market Dynamics - Gold, which experienced a sell-off after Warsh's nomination due to reduced concerns about Fed independence, has since recovered, with futures up over 17% this year [4][5]. - The yellow metal has surged more than 60% in 2025 and over 120% since 2024, driven by concerns over central bank independence, geopolitical tensions, and unstable trade policies [5].