Thursday, January 5, 2017

Gold price starts off 2017 the same way it did in January of last year following Fed rate hike

When the Federal Reserve raised interest rates for the first time in a decade back in December of 2015, the price of gold fell for the remainder of the the month only to reverse and climb by nearly 20% in early 2016.


Fast forward to December of 2016 where the central bank once again mirrored their 2015 actions by raising interest rates by a quarter point, and as before the gold price stagnated for the last few weeks leading up to the end of the year.

After the first five days of 2017 we appear once again to be seeing a similar move in the precious metals that took place exactly one year ago.  And although it is far too early to predict whether the outcome in the gold markets will mirror that which took place in January and February of 2016, the signs are pretty good that support levels have been established and that we will see a higher move in the gold price thanks to the Fed, and uncertainty in the global financial markets.


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