The Daily Gold, Released on 1/10/22
In this video we analyze Gold’s past performance during Fed rate hike cycles. Gold typically rebounds after the start of the cycle. If there is increasing inflation, then Gold can continue to trend higher as it did in the 1970s and also the mid 2000s. Most recently, the end of the cycle has been a very bullish point for Gold.
How Gold performs this time will depend on inflation and the economy. It may be fiscal stimulus that propels Gold next time, rather than rate cuts. However, the end of the Fed hike cycle or a long pause is significant even if it leads to fiscal stimulus but no cuts.
Jordan Roy-Byrne, CMT is a Chartered Market Technician and member of the Market Technicians Association.. He is the publisher and editor of TheDailyGold Premium, a publication which emphasizes market timing and stock selection for the sophisticated investor, as well as TheDailyGold Global, an add-on service for subscribers which covers global capital markets.