Sunday, September 25, 2016

Gold Unleashed By The Federal Reserve
Adam Hamilton provides fundamental & technical analysis of gold prices in light of the recent Federal Reserve policy statements & actions .. "Historically gold actually thrives during Fed-rate-hike cycles! As I pointed out in depth last December just days before that first Fed rate hike in 9.5 years, Fed-rate-hike cycles are actually very bullish for gold. There have been 11 since 1971, and gold’s average gain across the exact spans of all was way up at +26.9%. Gold rallied in a majority 6 of these 11 Fed-rate-hike cycles, enjoying huge average gains of +61.0%! And in the other 5 where gold retreated, its average loss was an asymmetrically-small 13.9% over their exact spans. The lower gold’s price entering Fed-rate-hike cycles, and the more gradual their hiking pace, the better gold performs as the Fed forces interest rates higher. So this newest Fed-rate-hike cycle couldn’t be any more bullish for gold. Gold entered it at major secular lows, and it is the most gradual ever. .. So this popular belief in recent years that Fed rate hikes are going to crush gold is ridiculous, a totally-false myth. Yet gold-futures speculators still hang on every word from the FOMC and its top officials. Whenever the Fed does something hawkish or jawbones about it, gold-futures speculators flee in terror. Conversely when the Fed is perceived as more dovish, these traders rush to buy gold just like we saw this week."
LINK HERE to the analysis

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