Gold Continuing Trend of Rallying After Fed Rate Hikes

Gold is continuing its trend of selling off leading up to widely expected Federal Reserve Rate Hikes, only to rally big immediately afterwards. During the 60-day periods prior to the December 2015 and December 2016 Fed Rate Hikes of 25 basis points, gold sold off by 8.9% and 7.3%, respectively. During the 20-day period leading up to yesterday’s Fed Rate Hike of 25 basis points, gold sold off once again by 4%.

After the December 2015 Fed Rate Hike, gold rallied by 30% within the next 7 months. After the December 2016 Fed Rate Hike, gold rallied by 11.5% within the next 2 1/2 months. Already since yesterday’s Fed Rate Hike, gold has rallied $26.40 to settle today at $1,226.50 per oz.

The largest gainers after each recent Fed Rate Hike have been Gold/Silver Mining Stocks! After the December 2015 Fed Rate Hike, the HUI Gold Miner Index rallied by 182.1% within the next 7 months. After the December 2016 Fed Rate Hike, the HUI Gold Miner Index rallied by 35.5% within the next 2 1/2 months. Yesterday, immediately following the latest Fed Rate Hike, the HUI Gold Miner Index soared 7.8% – one of its biggest up days in history! This is only the beginning with much larger gains to come in the weeks ahead for gold/silver mining stocks!

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