Gold is molten hot and burning its way through the high roof!
It’s the end of July, and you know what that means…the US. Fed’s Monetary policy meeting is nigh!
Yep, it’s that time of the year again when Traders, Bankers, Stock Analysts, Arbitrageurs, Economists, and other assorted economic aficionados start speculating on the Fed’s interest rate policy, up or down?
In this last quarter the rapid rise in gold prices has got everyone talking. A slew of factors are combining to create the perfect storm in favor of Gold, and if you haven’t looked at Gold yet, you’re missing out big time.
Last month gold hit a five year high when it breached $1440 per troy ounce, before falling due to good old profit selling.
…And the general trend is still up with a strong arrow, all buoyed by the Fed hinting that its open to a rate cut to boost the economy. Keep in mind gold is still quite a ways off from the highs of $1800+ that we last saw in 2011.
Recessionary trends, low inflation and low-to-negative bond yields have all factored in the rise of Gold, though nothing as much as plain old fashioned uncertainty.
The no-result result from the Osaka talks between China and the US has left the trade war in limbo. While talks and talks of future talks are put out in press release after press release by both countries in a bid to keep investors from fleeing to foreign shores, the general mood is pessimistically optimistic.
The uncertainty on whether the talks will or will not yield result is giving traders and fund managers the yips. No one wants a negative answer, yet if they prepare for the worst and invest their kitty on a negative outcome and instead see a trade deal take place, it would not be any better for their clients than if there were no trade deal at all. It’s the uncertainty, the not knowing which way to jump that’s got people holding bags of cash with no idea of where to put it.