Many people think that rate hike will make dollar stronger and hence not good for the gold price. That's what the mass media keeps telling you. However, the reality is just the opposite, so don't be fooled by them.
Every time when the FED increased interest rate (when the gold price was $1050 [12/2015], $1128 [12/2016], $1200[3/2017]), the gold price dropped BEFORE the rate hike but rose significantly AFTER the rate hike.
So BUY GOLD in June after FOMC
Another factor we consider when to buy gold is gold/silver ratio, when it's near 80~100, it is definitely a great time to buy gold (or silver) and when the ratio reaches the 20~35 range, its probably the time to sell gold when they make a all-time high, which occurred in the late 1980s and 2011.
For what's it's worth, I think that Fed has at most, one more rate hike left. Then they will be forced to start cutting rates again as more bad economic news becomes too hard to ignore. The auto market is imploding. World trade as measured by the Baltic Dry Index is very weak. I would not be surprised to see even more Quantitative Easing.
Gold has a right future, but I'm guessing that silver will do even better.
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Good guess. The keys to watch in this market are the gold/silver ratio. Any time it is above 70.00 as it is now, it's a significant opportunity to buy in. The other thing to watch out for is the XAU index. The pattern on the XAU is indicating a subtle drop to renewed lows in mining stocks that will continue forward into middle of 2017, but I think there is a bright light coming forward for gold/silver and mining shares in Q3 and Q4 of 2017. This is a transition year into a bear market and it won't really be viewed that way until March/April of 2018 when it becomes more apparent to both larger and retail investors that the markets are setting up for a significant fall. Keep your eye on mid-late June and watch the XAU index, there's a good opportunity to make money on the fluctuations especially if silver begins to fall back to the $16.00USD level.
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