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Intchains Group Ltd V.ICG


Primary Symbol: ICG

Intchains Group Ltd is a provider of integrated solutions consisting of computing application specific integrated circuit (ASIC) chip products for blockchain applications and a corporate holder of cryptocurrencies based on Ether (ETH). The Company utilizes a fabless business model and specializes in the front-end and back-end of Integrated circuit (IC) design, the two components of the IC product development chain. The Company’s products include computing ASIC chip products consisting of ASIC chips, computing equipment incorporating ASIC chips, ancillary software and hardware, the products are mainly used in the blockchain industry. The Company had built a technology platform named Xihe. The Company has developed hardware models and several systems under the Xihe Platform, including a factory production test system, an after-sales data system, a computing server system and a batch management system.


NDAQ:ICG - Post by User

Post by sailorbullon Sep 20, 2016 10:27am
141 Views
Post# 25255593

The Impact Of The Fed's Interest Rate Decision On Gold Price

The Impact Of The Fed's Interest Rate Decision On Gold Price

Summary

History suggests Fed Rate Hike mostly does not bring down gold prices.

Interest rate change is often reflected by the prices before the rate change itself is officially announced.

Gold prices are up more than 22% since last December's Rate Hike by Fed.

Although theory says that the price of gold should decline after an interest rate hike and it should increase after an interest rate cut, history shows that this expectation is often wrong. The financial markets always try to predict the future development and the interest rate change is often reflected by the asset prices before the rate change itself is officially announced. If there was a strong trend before the rate change, the trend may get disrupted for some time, although it tends to resume after the dust settles down.

It's a fact that making money from financial trading means getting ahead of the move, buying before an asset goes up and selling it before it goes down. So if gold should fall when Fed rates go up - like everyone thinks, because it pays no income and so carries an opportunity cost in the form of lost interest on cash - then no one should want to wait. Sell early, provided you're sure you know which way the Fed will go.

The story is that selling in advance works to depress gold prices before the Fed makes its announcement (just like buying before a rate cut pushes it higher). Brought forward in time, this self-fulfillment cracks open a gap between what intuitions says gold should do when the Fed raises (or cuts) and what actually happens after the fact.


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