by Steve Saville, The Speculative Investor
[…] In early-November of last year we predicted that a tradable gold rally would begin near the mid-December FOMC Meeting as long as the Fed did what almost everyone was expecting and implemented its first rate hike in more than 8 years. Our reasoning was explained as follows in the 4th November Interim Update:
“Looking beyond the knee-jerk reactions to the news of the day, we see a gold market stuck in limbo. In this no-man’s land between a definitively-bullish and a definitively-bearish fundamental backdrop for gold, the US$ gold price works its way higher during periods when it seems that the start of the Fed’s rate-hiking is being pushed out and works its way lower during periods when it seems that the start of the Fed’s rate-hiking is being brought forward.