Rate Hike Hype & Gold

To hike or not to hike – that question continues to swirl around the Federal Reserve. But it obscures an even more significant question: what difference does it really make to the gold investor?
As I explained last week, the Fed finds itself in a damned-if-it-does, damned-if-it-doesn’t scenario. Regardless of whatever economic news spins out of Washington D. C. in the next few weeks, the central bank has plenty of reasons not to raise rates. As we’ve argued for months, the economy simply can’t sustain a rate-hike of any significant amount over the long-haul. But if the Fed balks at a rate hike yet again, its credibility takes another shot on the chin.
So, it might try to nudge rates up this month. Or, it may well put it off again. But what does this mean for gold? Does it really matter in the long run?
Not really. There are more important fundamentals to consider.

This post was published at Schiffgold on DECEMBER 3, 2015.