Tag: interest rate hike

Fed Struggles to Extinguish the Inflation Bonfire (Here’s Why It’s Not Working)

Via Birch Gold Group

Fed Struggles to Extinguish the Inflation Bonfire (Here's Why It Is Not Working)

From Peter Reagan

This week, Your News to Know rounds up the latest top stories involving gold and the overall economy. Stories include: The Fed needs a 9% interest rate, gold posts biggest gain since March, and Venezuela’s gold isn’t getting home just yet.

Economist: Fed has to keep rising rates, will look for 9% benchmark

We’ve covered plenty of analyses over how interest rate hikes spell doom, especially in this economy. We’ve mentioned how the Federal Reserve will have to reverse course, which seems to be the consensus nowadays. But what would it look like if the Fed had its way with the benchmark rate? Continue reading “Fed Struggles to Extinguish the Inflation Bonfire (Here’s Why It’s Not Working)”

Could the Fed Kill Gold with Rate Hikes? History Gives Us the Answer

Via Birch Gold Group

Could the Fed Kill Gold with Rate Hikes? History Gives Us the Answer

This week, Your News to Know rounds up the latest top stories involving gold and the overall economy. Stories include: How gold blooms in rate hike cycles, gold’s unusual behavior, and the short-term gold price outlook.

More evidence that gold can outperform if a hiking cycle happens

Why does gold face a supposed headwind when interest rate hiking cycles happen? Is it fundamentals? Reason? As Adam Hamilton notes, it is little more than panic by over-leveraged investors. One good thing that can be said about this is that rate hikes get priced in far ahead and in succession. As far as the markets are concerned, three rate hikes have already happened.

Continue reading “Could the Fed Kill Gold with Rate Hikes? History Gives Us the Answer”