-
Gold's Path Intertwined with Fed Rate Moves, Inflation
Recent troubles in the U.S. and Swiss banking systems have led to a sharp, downward revision of Federal Reserve (Fed) rate expectations. Within the space of a few weeks, traders have gone from pricing a strong likelihood of four additional rate hikes to wondering if the Fed might continue to increase rates at all, or perhaps even begin cutting rates as soon as this summer (Figure 1). charts The abrupt change in interest rate expectations has been a boon for gold. Gold remains a de facto currency that still features prominently in the reserves of nearly every major central bank. However, gold is a currency that pays ... (full story)