Traders Await Fed Rate Decision For Clues On Gold’s Next Big Move – What’s Next?

Historically, precious metal prices have performed extremely well during Fed-rate-hike cycles. The last one ran from December 2015 to December 2018, when the Fed hiked its federal-funds rate nine consecutive times for 225 basis points total! Yet, Gold prices surged anyway.

Ultimately, if inflation keeps rising, but interest rate hikes are so far below that rise, you have negative real interest rates.

And that presents a very bullish backdrop for precious metal prices.

While precious metal prices may initially weaken as the Fed kicks off its rate hike cycle. This drop will mark the bottom and present a very attractive buying opportunity before prices take-off again.

To quote Goldman Sachs, “they have never seen the commodities markets this bullish before”.

Right now, Gold prices are in wait-and-see mode, which indicates a big move is on the horizon. The only question now, is which way.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

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