RE:Its easy to see why the equities fell off and gold's back upNow the so called official reasons why equities are failing and
precious metals are going up or trying to, since the paper goldmarket
is still allowed to counter the physical gold markets, and those like china,
india and Russia don't care right now, since they get to load up on
precious metals at much lower prices.
'Yellen, Jobs And A Stealth Rate Hike'
by Gary Wagner, Wednesday April 05
https://premium.kitco.com/commentaries/2017-04-05/Yellen-Jobs-And-A-Stealth-Rate-Hike.html
"Although it is not unusual for there to be an initial knee-jerk reaction to
events, today's key reversal in U.S. equities and the precious metals was
far from a typical reaction. Equities have been trading strongly higher
with the Dow Jones trading as high as 20,900 (+160 points) before selling
off and closing fractionally lower at 20,647, down 41 points.
Following the release of the jobs report and Fed minutes, gold immediately
came under major selling pressure, trading to an intraday low of 1244 per
ounce. As of this writing, gold is trading fractionally higher, up approximately
a dollar at 1256"
........
.......
"On Monday, we spoke about the multitude of events that will occur this
week. These included today’s release of the Fed minutes from the March
FOMC meeting, as well as the ADP jobs report. These events could, in fact,
be a precursor to the crescendo and finale that will begin on Thursday with
the start of an American – Chinese Summit. President Trump will meet with
Xi Jinping, the president of China, for the first time. This week will also
contain the nonfarm payroll jobs report."
me- last year 2016 the FED tried to get the US into negative interest rates.
This year they have to rationalize the increased interest rates they have to
do instead. When that happens the stock markets should go down and
the precious metals and their stocks should go up. Especially when there
is really no overheated US and world economy to justify the increased
interest rates. Just the need to normalize them, especially in the west.
'Gold in Fed Rate Hike Cycles 2',
by adam hamilton
https://news.goldseek.com/Zealllc/1490976015.php
"Nearly a half-century of data is a commanding sample, encompassing
all possible market conditions ranging from raging secular bulls in stock
markets to a full-on once-in-a-century stock panic. If American gold-futures
speculators’ fervent belief that Fed-rate-hike cycles slaughter zero-yielding
gold is correct, it would absolutely show up historically in such a massive
data set. But gold actually thrives in rate-hike cycles!
Since the Fed’s current 12th one of modern times likely isn’t finished yet,
let’s start with the previous 11 between early 1971 and late 2015. On
average during the exact spans of all of them, gold rallied 26.9% higher!
Those are serious gains during events supposed to slay gold investment
demand on widening yield differentials. Provocatively gold’s Fed-rate-hike-
cycle performance trounces that of the stock markets."