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Gold and the Federal Funds Rate
Thursday, December 17, 2015 6:10
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acting-man.com / Pater Tenebrarum / December 17, 2015
Wrong Assumptions
It is widely assumed that the gold price must decline when the Federal Reserve is hiking interest rates. An example is given by this recent article on Bloomberg, which informs us that SocGen believes “gold will be a casualty of Federal Reserve policy”. Never mind that the assumption that the Fed will now be able to simply embark on a “normal” rate hike cycle is in our opinion utterly absurd. It will only do that if the inflation genie unexpectedly gets out of the bottle, and is guaranteed to remain “behind the curve” if that happens (more on this further below).
The post Gold and the Federal Funds Rate appeared first on Silver For The People.
Source: http://silveristhenew.com/2015/12/17/gold-and-the-federal-funds-rate/
