Ahead Of Wednesday’s FOMC

By Craig Hemke – Re-Blogged From Gold Eagle

On Wednesday, the FOMC will hike the fed funds rate again and promise three or four additional hikes in 2019. But be aware that this forecast is far from being a done deal.

Once the FOMC statement is released at 2:00 pm EDT on Wednesday—and once Chairman Powell concludes his press conference some 90 minutes later—you will be bombarded with analysis of how great things are, how the Fed may be “behind the curve” and how several more rate hikes will be forthcoming in 2019. But are these forecasts accurate, and what will be the impact on precious metal prices should the outlook change?

Continue reading

Advertisements

Fed Turns More Hawkish

By Arkadiusz Sieron– Re-Blogged From Gold Eagle

Powell and Co. hiked again. And the FOMC removed the important phrase about “accommodative” stance. What now for gold?

Yesterday, the FOMC published the monetary policy statement from its latest meeting that took place on September 25-26. In line with the expectations, the US central bank raised the federal funds rate by 25 basis points to the target range of 2 to 2.25 percent:

Continue reading

Potential ‘Market Panic’

By Mark O’Byrne – Re-Blogged From http://www.Gold-Eagle.com

JPMorgan Chase CEO Jamie Dimon sees ‘chance of market panic’
– In annual letter to shareholders Dimon warns of increased inflation and interest rates
– Concerned QE unwinding could cause chaos as ‘markets will get more volatile’
– Hard to look at the last 20 years in America “and not think that it has been getting increasingly worse.”
– Positive about US economy over next year, but ignores record levels of world and government debt
– Believes major buyers of US debt (e.g. China) could reduce their purchases of US government debt
– Investors can protect portfolios with gold and silver bullion
– U.S. debt and dollar crisis coming which will propel gold higher (see chart)

Continue reading

Fed Hikes, Dollar, and Gold

By Adam Hamilton – Re-Blogged From http://www.ZealLLC.com

The US dollar has fallen rather sharply over the past year or so, despite ongoing Fed rate hikes. This persistent dollar weakness has really boosted gold. There’s a fascinating interplay between these two currencies and futures speculators’ expectations for Fed rate hikes. These traders hang on every word from top Fed officials, which greatly influences their trading. So these relationships are important to understand.

In late December 2016, the venerable US Dollar Index surged to an incredible 14.0-year secular high. That was just a couple weeks after the Federal Reserve’s second interest-rate increase of this hiking cycle. Top Fed officials were forecasting three more rate hikes in 2017, fueling euphoric sentiment in this top reserve currency. Everyone believed higher prevailing interest rates would prove very bullish for the dollar.

Continue reading

Stock Selling Unleashed!

By Adam Hamilton – Re-Blogged From http://www.Gold-Eagle.com

The unnaturally-tranquil stock markets suddenly plunged over this past week. Volatility skyrocketed out of the blue and shattered years of artificial calm conjured by extreme central-bank distortions. This was a huge shock to the legions of hyper-complacent traders, who are realizing stocks don’t rally forever. With stock selling unleashed again, herd psychology will start shifting back to bearish which will fuel lots more selling.

As a contrarian student of the markets, I watched stocks’ recent mania-blowoff surge in stunned disbelief. On fundamental, technical, and sentimental fronts, the stock markets were as or more extreme than their last major bull-market toppings in March 2000 and October 2007! I outlined all this in an essay on these hyper-risky stock markets on 2017’s final trading day. The ominous writing was on the wall for all willing to see.

Continue reading

Gold Bullish On Fed Hike 2

By Adam Hamilton – Re-Blogged From http://www.Gold-Eagle.com

Gold has been battered lower in recent months as gold-futures speculators fled in dread of the Fed-rate-hike boogeyman. As universally expected, the Fed’s 5th rate hike of this cycle indeed came to pass this week. When gold didn’t collapse as irrationally feared, the cowering futures traders were quick to start returning. Past Fed rate hikes have actually proven very bullish for gold, and this latest one will be no exception.

Continue reading

Are Central Banks Intentionally Going To Crash The System?

By Graham Summers – Re-Blogged From http://www.Gold-Eagle.com

Since 2007, the world has packed on a truly staggering amount of Debt.  That year (2007) is now commonly referred to as a debt bubble. At that time, global debt was $149 trillion.

Today, 10 years later, it stands at $217 trillion.

Put another way, the world has packed on another $68 trillion in debt since the last debt bubble. In terms of Debt to GDP, the world has risen from 276% in 2007 (an already insane amount) to 327%.

Continue reading