- Gold thrives during Fed-rate-hike cycles. Despite gold-futures speculators’ paranoia, a half-century of market history has proven this out. Gold rallied strongly on average during fully two-thirds of all modern cycles.
- Gold performed best entering them relatively-low with the FOMC hiking its federal-funds rate gradually. Both conditions are true today heading into the Fed’s looming thirteenth cycle.
- Investors flock to gold during Fed-rate-hike cycles because they are bearish for stock markets threatening economic recessions. Gold is remembered and bought since it tends to rally as stocks weaken.
For further details see:
Gold Thrives In Rate-Hike Cycles