OCT 6, 2016
TradeSnoop tell's us that the recent sell off in gold has many believing that the rally is done and lower prices lie ahead.
This is primarily due to the belief that the Fed is actually going to act on the hawkish talk and finally raise rates. However, even if the Fed does hike rates there is little downside left in the price of gold. The reason is that real interest rates have very little upside from here even if the Fed hikes. There are also several potential drivers to the upside for gold. Every time the market has reacted to tough talk from the Fed, real interest rates moved higher and gold sold off. Each time it has only been temporary.