Loading ...Janet Yellen says it’s ‘very possible’ the Fed has made its last rate hike of this cycle
You all have probably read, but it clearly appears the Fed is (or should be) on the margin of hiking or not hiking moving forward … it may depend somewhat on general market performance in the near term. The potential stop to the balance sheet reduction is another discussion entirely.
As I’ve been saying repeatedly for some time now. We are nearer the end of this rate hike cycle than the beginning. Gold knows this and is reacting accordingly.
I don’t fully understand the connection between rate hikes and Gold. For example, in 2015 lots of people were saying that the coming rate hike in late 2015 (the first of the cycle) would cause the dollar to rise up quickly and decimate Gold and Silver. Actually the opposite happened after the first rate hike in December 2015: Gold and Silver (plus the miners) went crazy bullish in the first half of 2016. Dollar also came down in that period.
Now people are saying the final rate hike of this cycle has happened? Are we supposed to be bullish on Gold then? From the late 2015 and early 2016 example, Gold bulls should want more rate hikes no?
This is one example why I don’t trust fundamentals too much and would rather rely on technical analysis!