The View From The Montana Log-Cabin As The Fed Squeezes And Gold Rises
By Nigel Somerville | Saturday 5 November 2022
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Gold closed the week at $1683, up nicely from last week’s $1646 and back above the apparently all-important $1675 mark. But perhaps the real surprise is that it rose at all, given that the Fed again hiked interest rates by another 0.75% to 3.75-4% and warned of more pain to come. Normally, that would see the yellow stuff weaken, given that the yield on Gold is zero. But instead, someone lit the blue touch-paper.
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