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Thursday, 11/19/2015 9:47:00 PM

Thursday, November 19, 2015 9:47:00 PM

Post# of 63744
This Is How GOLD Acted During Past Rising Rate Cycles
http://www.zerohedge.com/news/2015-11-19/how-gold-acted-during-past-rising-rate-cycles
Summary:

Contrary to the 'pundits' and 'writers' who make statements that the crowd wants to hear, we underpin our investigation based on historic facts and figures. In particular, we analyzed gold's reaction after interest rate hikes in the last decades (as of 1972, when gold started to trade freely).



Excerpt:

As we are exiting a period of exceptionally low interest rates with a moderate economic growth, present times are comparable to the time period 2004 to 2006.

As interest rates rose during those years, the price of gold followed that path higher as of the moment the Fed engaged in a monthly rate hike. During the last phase of rate hikes, gold started to rise even exponentially.

We believe that this path will be repeated in the future. We will most likely see a pattern of higher lows and higher highs, as gold's decline is about to stop when they hike.


BAA

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