New Gold Bull Market Now Official; Breaking Point In Paper Gold?
By Clint Siegner
ActivistPost.com
MARCH 8, 2016
Gold officially entered a bull market in last week’s trading with prices gaining more than 20% from their December lows. The silver price also put on some very nice gains, but the price needs to reach about $16.40 before watchers can make the same claim.
If the white metal can exceed last week’s gains of more than 5%, the silver market will reach official bull territory too.
Metals investors will be following the speculation surrounding the upcoming Federal Open Market Committee (FOMC) meeting on March 16th. Recent rallies in stocks, commodities, and oil are raising the odds that officials just might hike rates once again. Their problem is that the rally we’re seeing is largely based upon speculation they would not further tighten.
The FOMC hiked rates in December. The ensuing carnage in the markets during the second half of December and January led to a consensus that officials would abandon attempts at further increases. Some even speculated that officials would completely reverse course and may even implement negative rates. At which point the rally began.
Markets are behaving like the stimulus addicts they have become. The Fed is caught in a trap of its own making. Officials may want to raise rates, but recent experience has shown they won’t be able to pull that off without immediate and profound consequences.
Cracks Widen in Paper Gold Market
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