After the FED cut interest rates 0.25, gold & silver saw a mild retracement only to roar back the next day. Clearly the market sees precious metals as a dollar alternative.
The panel looks at an article from Bloomberg contributor Frank Holmes titled ‘Get Ready for a Weaker U.S. Dollar… And stronger gold’. With the FED having locked in a rate cut, the question now is; what happens in the months to come? Is this simply a one off, or is this the start of an easing cycle. In his article, Holmes talks about negative yield rates which will lead to investors increasingly preferring alternative forms of money such as gold. This is yet one more independent financial analysis joining the gold bull fray