Gold Thrives in Fed Interest Rate Hike Cycles

Gold’s deep new secular lows of recent weeks were fueled by American futures speculators’ overpowering fear of Fed rate hikes.  They believe zero-yielding gold is doomed in a higher-rate world, so they dumped gold futures at astounding record rates.  The problem is history proves just the opposite, that gold tends to thrive during Fed-rate-hike cycles.  This revelation is a super-bullish near-term omen for gold. Some brief context is essential to frame gold’s apparently dire predicament today.  Late July saw gold crushed to new secular lows by a record extreme gold-futures shorting attack brazenly executed to blast through long-side stops and foment panic selling.  But this burst selling soon fizzled, leading to a major gold bottom in early August.  Over the subsequent few months, gold carved an impressive new uptrend.

First published here: Gold Thrives in Fed Interest Rate Hike Cycles