Gold: Showing Strength Despite Rate-Hike Signals

stock news

More than any other factor, changes in expectations for U.S. interest rates play a key role in determining short-term movements in the price of gold, and to a lesser extent silver and platinum. During much of the past two years, the correlation between the daily change in the prices of gold and Fed Funds futures, expressed as an interest rate (100 minus price), has averaged at around -0.6 (Figure 1).

Комментариев нет

Добавить комментарий

stock news
Could the Initiation of Trade Skirmishes Lead to Trade Wars?

The biggest current threat to global growth is a trade war.  There are other risks, too.  The U.S. Federal reserve is unwinding quantitative easing and raising rates, but is making the policy shifts very gradually, with careful market guidance.  Governments are focused on whether they need to cut taxes, not …

stock news
Fed Unwinding of QE and What it Means for U.S. Bonds

What next for the U.S. bond market, where yields are outstripping those in Europe and Japan? Keep an eye on quantitative easing by the ECB and BoJ.

stock news
Oil: Could Iran Risk Reverse Options’ Bearish Signal?

The removal of Secretary of State Rex Tillerson and replacing him with CIA Chief and former Congressman, Mike Pompeo, has implications for nearly all aspects of U.S. foreign policy, including Middle East relations.  More specifically, Tillerson supported the Iran nuclear deal (Joint Comprehensive Plan of Action or JCPOA), whereas Pompeo …