Gold could be the most resilient asset to own if the Federal Reserve continues to raise rates, while stocks might be the worst place to be, with non-dollar currencies falling between the two.
The Federal Reserve continues to raise rates which as we've herein documented ad nauseam found the price of Gold rise +69% from 2004 through 2006 whilst FedFunds rate rose from 1.00% to 5.25%
We've seen this picture before, most notably the rally that took place in late 2007 into 2008 only to have it turn down sharply after topping in May. Beware the suckers rally. Except gold and silver..
Last week I wrote about the numerous positive divergences building in precious metals. On a near-term basis, Gold looks the worst of the group. But that can be a good thing.
