Fed Surprises Markets with Changing Policy Stance
In several financial media outlets, Gold Traders has been clear in its forecasts that the US Federal Reserve will be forced to change its interest rate outlook in order to meet with the true demands of the economy. For anyone that is looking to get started investing in gold or in trading commodities, this is going to be critical information as Fed interest rate policy is one of the most significant precursors when determining which trends are most likely to happen next in stocks or gold assets.
Changes in the US Economy
Since the financial crisis of 2008, the Federal Reserve has gone to great lengths to preserve the security of the US economy — but whether or not this has been truly accomplished in an entirely different question.
Since the financial crisis, we have seen many economic changes at the federal level that have impacted the ways that investors of the S&P 500, Dow Jones Industrials, and precious metals have plied their trade. Essentially, we are not finding ourselves in a situation where rising interest rates might actually be a positive for gold prices as investors will have very few options available. Gold Traders will continue to post updates on the situation, as markets are now looking for three interest rate hikes in 2017 (rather than two rate hikes).
President Donald Trump Impact
President Donald Trump should continue to have an influence, as consumers look after the US Presidential election for signs that his pro-business agenda in taking shape in ways that will allow gold prices to return to their previous highs.
Gold Price Chart:
SPDR Gold Trust ETF (NYSEARCA:GLD)
In the chart above, we can see that GLD is now trading at levels that gold investors have not seen since 2015. These are fairly significant declines in a short period of time, so we could still see rallies if market information starts to jar the perceptions of the market. If we start to see significant reactions in the VIX volatility index and in the S&P 500, we will most likely see rallies from the lows in GLD, SLV, and in gold prices as a whole.
Gold Trading Strategies
When we place these facts within the broader context of where we stand in the financial markets, we begin to see the possibility that gold prices can still rally significantly from where we are seeing precious metals trade currently. This could mean that there are still some amazing opportunities with respect to where your personal precious metals investments could be headed over the next few quarters.
For stock market investors, the word volatility can often spell trouble as this can always negatively impact corporate earnings results. But this is not the case for gold traders and metals investors that are positioned for safe haven security that can often come during a stock market collapse. Continue reading Gold Traders performance assessments for the next updates in these areas of the financial markets.