Economic Times/Chirag Mehta/11-26-2016
“Until we go past the rate hike in December, gold prices are likely to remain under pressure. Post the Fed rate hike, gold prices may come under bid as markets try to ascertain the extent of further rate hikes and realize that the Fed may stay behind the curve to keep real rates negative for a much longer time.”
MK note: It’s the part about the Fed keeping real rates negative that resonates – politically and economically. I think the Fed would be hard-pressed to get in the way of anything that produces even a whiff of real economic recovery. Especially after all the discussion about the central banks having run out of ammunition over the past couple of years.
