Subscribe for 12 months with recurring billing - $199

Buy 12 months of subscription time - $199


Search Gold Prices
Gold Price
[Most Recent Quotes from]
Our RSS Feed

Gold Updates by Mail

Enter your email address:

Follow Us on Twitter
« Doug Casey on the Nanny State | Main | One of America’s Largest Companies is Stockpiling Food and Gold for the Next Financial Crisis »

Gold prices Haunted by The Federal Reserve

The “will they wont they” hike rates in the US casts a shadow over gold prices and hampers golds ability to gain any traction. The recent FOMC meeting has hinted once again that a rate hike is possible in December and so the prospect of a stronger US Dollar puts downward pressure on gold in dollar terms.

This mantra of we are going to raise rates has been going on for over a year by the FOMC and now we are down to the last month of the year when such a move can be accommodated. If however, the data regarding employment and inflation does not hit the Feds targets and they decide to delay once again, until next year, then their credibility will be shot.

We have for a long time expected a final capitulation in the precious metals sector and a rate hike could be the catalyst for such a move. If the Feds targets are reached and they do pull the trigger on a rate increase then gold and silver will plunge in dramatic fashion. This could be the final clear out that this sector needs in order to start again and build a solid base from which to form the next bull market. Those who can keep their powder dry until such an opportunity presents itself should do very well indeed.

Taking a quick look at the chart we can see that gold has rolled over and is now heading south with the possibility of a re-test of the $1080/oz level in the frame, if that fails to hold then the sell off could be severe.

The time is quickly approaching when this sector of the market will turn around - will you be joining us before it takes off?

If you would like to know which stocks we are buying and selling please join us atStock Trader our premium investment service.

Subscribe for 12 months with recurring billing - $199

Buy 12 months of subscription time - $199

If you are new to investment in the precious metals sector then you can subscribe of our FREE newsletters regarding gold stockssilver stocks and uranium stocks, just click on the links and enter your email address and we will email you our articles along with other interesting posts.

Please remember to check your spam folder once you have subscribed to ensure that our verification email has not gone astray and you are getting our emails.



Winners of the GoldDrivers Stock Picking Competition 2007 






PrintView Printer Friendly Version

EmailEmail Article to Friend

Reader Comments

There are no comments for this journal entry. To create a new comment, use the form below.

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>