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.
Stock market investors are desperate for any dovish words or action from the Fed. If they get it, gold could shoot to $1730 very quickly. Having said that, it’s still a coin toss..
