It’s February and things are getting interesting again in the Financial Markets as speculation runs rampant about whether the Federal Reserve is going to imminently cut Interest Rates. In many ways it looks like a Game of Chicken between the Fed and Mr Market and we’re about to see who flinches first.
The market has already started selling off Regional Banks in the US, potentially sparking off a fresh round of Bank Runs while the Fed is trying to hold the line and resist the expectation they will start cutting rates as soon as March. This is all in the context of a big Presidential Election Campaign that is building up a head of steam this year so the politicians are likely to have some influence on how this goes down as the political campaigning begins in earnest.
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Meanwhile, Gold has been coiling up in its price action and getting ready to make a big move. Personally I think that regardless of what happens that move in Gold is likely to be UP. If the Fed cuts rates then that’s going to be Inflationary and there is no better long term hedge against inflation than Gold...while if the Fed holds the line and the Market kicks off a fresh round of Bank Runs then we’re going to see a Flight to Safety...which also typically means capital flows into Gold.
It’s a great time to be holding Gold in my opinion. This month is going to be really interesting so keep an eye out! It is certainly no time to be asleep at the wheel.
They aren’t going to be able to cut rates here anytime soon. There are way too many things that won’t allow it. But I do believe gold is going to move up. I just hope it takes silver with it.
You don't think a fresh wave of bank failures would force their hand?
I doubt it. It might be their way to install the digital currency.
They're stalling, the Fed is too scared to go either way with interest rates. I'd even dare to say interest rate increase rather than rate cuts.
I think the market throws a massive tantrum if they raise from here. I reckon they will stall for as long as they can but they'll be forced to cut in the next 6 months.
The ingredients are good for a gold run. Up up up!
I agree, holding gold is a great thing right now. No rate cuts coming here anytime soon it appears.
I am really curious to see how the prices for precise metals and crypto will be in a year or 2
Just common sense.....
@tipu curate
Thanks for trying anyways :)
Sorry, please curate posts not older than 1 day.
!DHEDGE
It will be good to hold gold right now. We never can tell how far it will go
Yesterday there was also news that the stock prices of three banks have dropped a lot, so we are seeing this news that people's faith is disappearing from the banks and all the people are at that time. Entering the crypto market or entering digital gold, this is the day we will see that we can see the markets going higher in the near future.
Hopefully saying that better things are yet to come.
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