whether it will have multiple interest rate increases this year, which
the gold metal is taking advantage of but not a solid trend till the FED
meets march 15th and probably why the gold stocks aren't following
the uptick yet. And therefore the gold metal uptick shouldn't last long
either, but who knows. Something else could be spooking the markets
that will propell the gold stocks to start rising too. Like stocks take a
correction which gold stocks always go up on where investors at least
temporary move into gold stocks when get out of equities.
https://www.kitco.com/news/video/show/Kitco-News/1495/2017-02-23/Gold-Today-Prices-Trade-at-3-month-Highs-Thanks-To-Fed-Confusion The US budget ceiling raising vote happens around mid march too,
and until then it's hard for Trump to get his inflationary causing
infrastructure programs passed because they are also massive
budget deficit generating too needing the budget ceiling to rise a lot.
Gold stocks always go up when inflation happens, because inflation
is supposed to be a sign of an overheating economy, where stocks
are supposed to correct and gold is a temporary at least retreat to
make more money while that happens.
So unlike what pundits say, both interest rates and spread of inflationav
above it, can go up and gold can do great as bond and stock investors
leave bonds and stocks to enter overly killed gold stocks.
Gold takes off on its own if we are also in a world currencies debasement
problem because of QE money printing at low interest rates that didn't
work to recover the US and world economies, and can't last anymore
because didn't work. All happening now!
It's quite likely that the FED will pass further interest rates increases
because they aren't really in control of that now. Even if Hillary had
gotten elected it would probably be the case, since continual QE
money printing bond buying at low interest rates liquidity for the
budget deficit and anything else, was proving to be impossible without
entering into increasing negative interest rates drops. Without a cashless
digital money system trapping people into that, people were voting
with their actions, their cash out of the system into personal possession or
stocks or gold.
Then could only get bond buying liquidity pumped into the economy
for budget deficits or gov't sponsored infrastructure programs or what
ever else, by raising the bond yields, which is essentially raising the interest
rates, to attract private money now to buy bonds.
So does the FED
have a choice with something that is really out of their control now,
unless the US led world economy was overheated (which it isn't even
close to being and is the problem, ie they aren't recoverying or
recoverying properly) and the FED put interest rates above the inflation
rate, not to generate bond buying liquidity but to kill liquidity this time and
the overheated US led world economy. (Which like I said isn't there and
can't be a tactic by the Fed now to show they are still the boss of interest
rates, the economy and everything else, because they aren't right now)
The market is in charge now, not the FED. Until either the US led
world economy got overheated (unlikely) or the inflation rate gets too
high (by getting the past printed up money out of the FED's reserves into
the economy, by the bond market having to increase interest rates to attract
buyers, which the inflation rate has to stay above until killed over an
overheated world economy that isn't there, and to get gov't generated
huge infrastructure programs going, all of which are not only inflationary,
but raises debts and most importanly raises the interest on the debt
much too high, (all very likely to get the FED back in charge to stop
high interest rates and inflation rate).
Also to mention that everyone's paycheck are hurt too much by high
interest rates and inflation spread above it (will happen along with the
others interest and inflation problems above). But the FED doesn't
care about us as one of the too high interest and inflation reasons for
stopping too high intereset and inflation rates, or it would never have
allowed massive money printing by forcing interest rates to get to zero,
in the first place which hurt seniors and general conservative investors
on fixed investments and savings, so much. Also hurts more aggressive
investors who need higher interest rates for their investment income
and more extravagant buying plans and endeavors.