Replies to post #16743 on Direxion Daily Gold Miners Bull 2X (NUGT)

[mannken]

Here are some things to consider about rates

FOMC has been verbally raising rates for more than a year, in other words, as you point out, they can influence markets with talk/power

Markets tend to look at projection of target rates vs. a single 1/4 point basis change

Lower rates signify deflationary cycles, Higher rates signify inflation cycles, historically gold has been safe haven with inflation, how markets react if/when there is a change in fed funds rate trajectory is anyone's best guess, my assumption, gold could rise in the face of rising rates

Why gold is rising in the current deflationary cycle of recent, because global economic trade data is falling off a cliff, and CB policy confidence is crumbling

Dot plot graph is on page 3, there is 1 fomc member with negative rate targets for 2015 and 2016, certainly there is no upward projection for 2015
http://www.federalreserve.gov/monetarypolicy/files/fomcprojtabl20150917.pdf

Of course we can't predict what FOMC members might wake up one day and do, but dollar chart is painting or discounting huge signs of what's to come

[rawiron1]

When Christmas sales slump this year to their lowest in 7 years this will be their next excuse to not raise.

NUGT