Marc Faber, editor of the Gloom, Boom & Doom Report, is bullish on gold and oil and gas stocks.
from The Gold Report
Given the abundant speculation about the Federal Reserve and interest rates, Marc Faber told CNBC last week he believes the Fed is closely watching the market reaction to its intimations it may raise rates in June. If the market reacts very negatively, it could hold off raising rates, while a relatively stable market could signal the OK to the Fed to raise the rate by a quarter-point.
Generally, higher interest rates support a higher U.S. dollar and weaken demand for gold as gold does not pay any interest.
However, Faber says he believes that the Fed will not raise interest rates next month. “My view is that in June, they [the Fed] will not move; they will not increase rates,” Faber stated. “The market will begin to perceive that the Fed wants to support active markets, which they have stated on numerous occasions before,” he added.