Tag Archive: interest rate hikes

A Win-Win Situation

The recent surge higher in both stocks and economic growth may very well be unsustainable. In fact, it seems that an increasing number of analysts and prominent investors are now sounding the alarm bells about what could be seen economically next year or the year after. This could potentially put gold into a win-win scenario. Here’s why: Slowing Growth and/or Recession: The economy is, without question, humming along at what is arguably an excellent pace. Jobless claims are the lowest in nearly half a century,... Continue Reading

The Trade War is on

Over the weekend, China announced tariffs up to 25% on a variety of U.S. imports, including pork, nuts, fruit and wine. The action taken by Beijing is in direct response to recent tariffs announced by the Trump administration. The recent actions taken represent a heightened state of tensions surrounding trade, and may continue to keep investors on edge. The war on trade could potentially escalate, and regardless of what side of the political aisle you may lean towards, it could have a significant effect on... Continue Reading

More Fed Minutes – Same Story

Wednesday’s release of the highly anticipated Fed meeting minutes were essentially a non-event. Although no action is expected from the central bank until, next month, some investors did seem to be a bit nervous as the new Fed Chairman, Jerome Powell, takes the reigns. The central bank did stick with some similar language, as it suggested that it would on a path of gradual rate hikes. Of particular note, the Fed did raise its inflation expectations and stated that core personal consumption expenditures would rise... Continue Reading

Yellen Comments Deemed Dovish

In what may be the most significant commentary of the week, Fed Chairwoman Janet Yellen’s prepared remarks have been released ahead of her testimony before the House Financial Services Committee today. Ms. Yellen alluded to the pace of further rate hikes being very gradual, and it seems that rates will not reach levels seen in previous tightening cycles. Investors will be paying close attention to her commentary before the committee later today, as well as to the Q&A session to follow. You have to wonder... Continue Reading

Do They Have It All Wrong?

There seems to be a large consensus that the potential for further rate hikes from the Fed in the second quarter and beyond could derail the rally seen in gold in recent months. A more aggressive central bank, a stronger dollar index and robust appetite for risk are all reasons given for what could be the yellow metal’s “demise.” Thus far, however, none of these issues or potential issues has been able to put a halt to the buying in gold. In fact, the gold... Continue Reading

Will the Rally Resume?

After getting 2017 off to a stellar start, the gold market has been under some pressure in recent weeks, declining by over $60 per ounce. The selling seen in recent sessions could potentially provide another opportunity to buy gold at lower levels. The gold market apparently did not fully discount a March rate hike from the Fed. The central bank has taken a decidedly more hawkish tone in recent weeks, and essentially informed markets that a March hike was not only on the table, but... Continue Reading