Loading ...Re VIX bottoming
dadoc1 here’s my take on the VIX.
The VIX is telling us of the little to low event risk remaining on the calendar until the FOMC rate decision but I expect The VIX thus gold may rebound amid profit-taking before FOMC meeting even though the chance of a rate hike is almost certain. The future of gold may well depend the wording of the FOMC on pace of future rate hikes. Remember when gold started the cup and handle formation in Jan because the economic indicators weren’t supporting the pace future hikes by the FOMC. Once again, If they project a pace which isn’t immediately followed up by positive economic data then we may well test the formation again!
I think your analysis is spot on.
But your chart is disingenuous.
Anyone who has tracked gold for any length of time knows that gold responds to REAL interest rates, not nominal.
Ie, is the Fed (or more generally, are rates) AHEAD of the curve on inflation, or behind?
your theory is correct but that chart never lies!