Since the Federal Reserve raised its target interest rate last December, every dovish or hawkish comment from Janet Yellen and other voting members of the Fed has sent stock, bond, and commodity markets into flux.
Most notably, gold rallied 30% and silver 40% since the December 2015 rate hike, as likelihood of the Fed’s four planned interest rate increases dwindled.
The Fed has been on hold this year due to a myriad of reasons, including subpar economic growth, sluggish job and wage growth, low inflation, and the unexpected exit of the UK from the European Union.
But another year-end rate hike could be on the horizon, evidenced by the relatively strong jobs reports we’ve seen since July. In fact, the Federal Funds futures market is currently predicting a 70% chance of a rate hike in December.
As those odds have increased over the past month, gold and silver have experienced declines of 10% and 15%, respectively.
If you’re considering precious metals for your portfolio, it’s a good time to buy.Read More