Saturday, January 13, 2018

Exactly one month after Fed raised rates, gold is up $100 from its December 13 level

At the end of the trading day on Dec. 12, the price of gold was at $1238.  However as we would soon discover on the following day, the precious metal's best friend would be none other than the Fed itself.

This is because in the 30 days since the December 13 announcement of a new rate hike by the central bank, the gold price is up nearly $100 to its Friday close of $1337.73.

A $100 move for gold also equates to a 7.5% climb in the past 30 days, with most of that occurring in the final three weeks of last year.  However ongoing monetary, economic, and geopolitical events such as the falling dollar, rising inflation, and the potential advent of the yuan-denominated oil contract appears to have set the stage for the gold price to go much, much higher in the coming days, weeks, and months, where the next key resistance level to cross is sitting at $1400.


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