“It is better for you to be free of fear lying upon a pallet, than to have a golden couch and a rich table and be full of trouble.”
Commentary & Analysis
Gold quiet period about to end?
From today’s Wall Street Journal:
“Major U.S. stock indexes have been historically quiet this year. Now, that inactivity has spread to the precious metals market.
Gold stayed in a $34.50 trading range in November, the lowest gap between its high and low in any month since October 2005, according to the Journal’s Market Data Group.”
We believe this low volatility period is about to change for the shiny metal.
Gold pays no interest. Thus, gold prices tend to be negatively correlated to interest rates; i.e. higher interest rates and lower gold prices, vice versa. So, if one accepts as probable the following we gleaned from this week’s Barron’s magazine…READ MORE