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Gold Bottomed After Recovering From Its 50% Retracement?
U.S. interest rates have been dropping on reduced expectations for a Fed rate hike this year. That’s important because that shorter term yield is more sensitive to Fed moves. Bond yields have also been falling. One of the side effects of lower yields is a weaker dollar. The first chart shows the Dollar ETF (UUP) dropping as well over the last month. That’s because lower rates make a currency less attractive. A weaker dollar has a lot of intermarket implications. The most direct intermarket effect is higher commodities and stocks tied to them, which includes energy and materials. The combination of lower rates and a weak dollar is especially good for precious metals and their related stocks.
The post Gold Bottomed After Recovering From Its 50% Retracement? appeared first on Silver For The People.
Source: http://silveristhenew.com/2015/10/15/gold-bottomed-after-recovering-from-its-50-retracement/
