Gold, The Fed And Where’s The Beef?

The question on everyone’s mind now is, are we about to break out higher with the price of gold?

Follow the Fed?

We’ll start with the Fed with my analysis because interest rates and the stock market have been driven the last 2 years in particular by what the Fed does and this in turn has affected the dollar and gold.

In the old days the markets and rates were driven by the size of Alan Greenspan’s suitcase. Then it was driven by QE on or QE off during Bernanke’s tenure. And lately it has switched to the simple question “will they or won’t they” raise rates? I guess Yellen’s purse size is irrelevant. Valuations are a thing of the past for the most part when it comes to the market and what the Fed does or says they will do with interest rates is all that matters. “What is the Fed going to do?”… is the new mantra. But the Fed these last 2 years has a lot of egg on their face when it comes to their comments versus actions.

Janet Yellen’s Fed said in December of 2015 that they will raise rates for the first time in nearly a decade as a “vote of confidence.”

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