This article contains some of the more interesting headlines as of late.
I wanted to share his comments with each one of you so you can hear from other sources on how damaging negative interest rates could be. These comments only add fuel to the momentum that has been created by ETF purchases from the beginning of the year.
On our shores, the Federal Reserve governors continue to send out mixed signals every time they share their opinions. This policy continues to create a smoke screen for the investor on the possibility of future rate decisions.
Let’s briefly explain how the metals get into the depository. I will use as an example our CME and ICE depository, International Depository Services of Delaware (IDS).
So I expect, if the rally in the gold market continues in March and there is no increase in the Fed Fund Rate, a strong interest in the physical metal will be in order.
Well today, another Fed chairman emerges from behind the curtain to add his two cents: Richmond Fed Chairman Jeffery Lacker. I guess he felt left out, or Janet just told him it’s his turn to comment on future Fed rate hikes.
So is it time to give gold a serious look? As I’ve been sharing my opinion and the opinions of many gold traders around the world, as we all watch the action in interest rates, the dollar index, equities and the price of oil.
As I enjoy taking a contrary position on topics like this, I believe Gold will continue to be well supported at these levels and I don’t believe the data the Fed will look at going forward will give them any ammunition to raise rates at the next Fed meeting.
Walter Pehowich is on vacation today, so our commentary comes from Stephen W. Miller, CEO of Dillon Gage Companies.
“Tightening financial conditions driven by falling stock prices, uncertainty over China and a global reassessment of credit risk could throw the U.S. economy off track from otherwise solid course.”