In This Issue
Interest rate cycle peaks and gold goes higher
Buy on rumour and sell on news. Isn't that what they say?
Well, that was the initial reaction last week when the Fed
announced a 0.5% cut in US interest rates, but it recovered
in the following days.
Apparently the Fed opted for the more aggressive cut
because it was concerned about the job numbers and the
risk of a slow down in the economy. Inflation certainly seem
to be under control, dropping from 7% to 2.2%.
If we have truly seen the peak interest rates we can be
expecting further cuts as we progress into 2025. This is
likely to be the main driver of markets for the foreseeable
future.
Maybe it is getting monotonous, but gold hit a another new
high on Friday night. That is bad for producers with hedge
positions, but great for everyone else ... provided you have
gold stocks in your portfolio.
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