- Gold Trading | December 1, 2017
The prevailing view is that rate hikes are the natural enemy for gold prices. Analyzing rate cycles & gold prices from 1971, we find gold tends to do better in hiking-cycles than cutting-cycles. The positive performance during hiking-cycles can be explained with the 3 drivers identified in our gold price framework. Given the outlook for these drivers, gold will likely do well even as the Fed keeps raising rates.