Commodity Trade Mantra

Posts Tagged ‘Interest Rate Hikes’

The Federal Reserve Came, Saw, Did Nothing – Catching On The Fed Game?

This has become modus operandi for the Federal Reserve over the last two years. As each FOMC meeting approaches, speculation about a possible rate hike ramps up and then the Janet Yellen does…nothing. The one exception was last December, and that turned out to be a complete disaster. Interestingly, the mainstream is starting to catch on to the game.

Barking Dogs Seldom Bite: Fed Won't Hike Interest Rates - All Dips a Gift to Buy Gold

The news that the Fed hopes to raise interest rates in June & subsequent quick price drop in gold has scared a lot of people out of gold. In reality, the Fed won’t raise rates in June on at least two counts. First the stock market rally that began in Feb has already lost steam. Second, there are no signs of a sudden economic boom. The price dip is a gift for those who want to buy gold.

Why Investors See Higher Gold Prices In 2016 - Here Are Six Reasons

Precious metals remain the 2016 commodity leaders, with silver posting a huge 25% gain & gold prices showing a 21% rise. The year is off to a good start for gold investors. But, the party may have just begun. A bevy of economic, monetary, currency and technical factors continue to develop in gold’s favor, which argue for the potential for higher gold prices in 2016.

Will a March Fed Rate Hike lead to Crashing Market Expectations?

Will a Fed rate hike in March lead to a train wreck by crashing into market expectations? It depends on whether Janet Yellen can signal the markets that her Cannonball Express is not stopping. Casey Jones died frantically pulling the train’s whistle. Janet Yellen needs to start blowing the Fed’s whistle and warning markets now — before it’s too late.

Inflation - The Fed's Nightmare Scenario Is Becoming Reality

Higher inflation is not a dream come true. It is the Fed’s worst possible nightmare. It will expose the error of their 8-year stimulus experiment & the Fed’s impotence in restoring health to an economy that it has turned into a walking zombie addicted to cheap money. If inflation catches fire now, with growth close to zero, the Fed will be completely incapable of controlling it.

Gold Prices Actually RISE After Interest Rates are Hiked

Conventional wisdom says that rising rates are bad for gold prices. HSBC’s Global Research team found that gold prices have actually risen the last four times rate hikes began. History shows that gold prices also fall leading into a rate hike and generally rise, though sometimes with a lag, after the first rate hike.

Gold Prices and the Fed's Interest Rate Hikes

The sharp early-year surge in gold prices has fizzled in recent weeks Are higher rates really bearish for gold? Gold can’t drift lower forever any more than stock markets can rally forever. So instead of just blindly accepting the belief that Fed’s rate hikes are bearish for gold, why not check the historical record which proves just the opposite?

Don't Fear Rising Interest Rates? Really?

There has been much commentary published as of late discussing when the Federal Reserve will begin raising interest rates. Generally, attached to the heels of that discussion, are comments suggesting that investors have nothing to fear from such an event. However, is that really the case? Let’s take a look.

What History Says About Fed Interest Rate Hikes

While Ms. Yellen stated that interest rates could rise as soon as 2015, it is possible that it will be far longer than that. Jim Cramer said the idea of rising interest rates shocked the markets, however, in the long-term it’s a positive sign. It is natural for interest rates to rise as the economy does better.

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