The Argument Against A Rate Hike
The Federal Reserve’s upcoming December meeting is likely to result in an interest rate hike; the majority of analysts are expecting the bank to make a move.
The Federal Reserve’s upcoming December meeting is likely to result in an interest rate hike; the majority of analysts are expecting the bank to make a move.
Many of the world’s greatest investors have been willing to buy at a time when the majority of the market was turning away from a particular sector.
Dithering by the FED, coupled with associated weakness in the US dollar have both combined to provide gold bugs with some much needed good news in the last couple of week, with gold rising Lazarus like from its trough of despondency in the $1110 per ounce region, to positively sparkle at the $1190 per ounce.
Today’s Pre-market movers for October 6, 2015
With China facing an economic slowdown and many questioning whether or not the nation’s government data presents a reliable picture of just how bad the situation is, metal prices have fallen to multi-year lows.
Whenever I put the proverbial pen to paper and start to write about gold, I can already hear the chorus of dissenting voices from those traders and investors who only view their beloved metal as bullish, and can never accept the reality of what is actually happening on the chart.
Despite being bearish on gold (GLD, quote) for so long, and sounding to many gold (IAU, quote) traders and investors like a old recording stuck in a groove,
For gold investors and gold bugs, the current malaise in the price of gold is both relentless and remorseless with each minor rally promptly engulfed by a wave of heavy selling. As someone wrote a few weeks ago, gold bugs consider the market to be functioning correctly when the price of gold is rising, and incorrectly when the market is falling.
The AUDUSD pair initially fell during the day on Wednesday, but then turned back around to form a bit of a hammer.
Panic – what panic. Not according to the price of gold and whilst other markets have seen extreme volatility with equities plunging, currency pairs opening gapped down, and the VIX moving violently, gold has continued to remain calm and serene throughout, with hardly a murmur to reflect the turmoil around.