And, now, when the Fed begins to become more hawkish, and reduces its involvement in the market and even calls for rate hikes, gold begins to rally. It was exactly the opposite of what everyone seems to have expected.
Traditional gold investments have become very popular in other countries as well, with Americans having purchased 91.3 tons of the yellow metal in the past nine months (+79%), while in China and India..
The stock market reaction this week was to see the stock market fall, gold rise, bond yields fall and the yield curve narrow. Is Santa Claus coming to town? Looking more like the bears are coming instead.
Gold looked like it was going to cave in, but instead it reversed course. Gold is suddenly back above the moving averages and ending the week on a very strong note.
