Summary
- This recent drop in inflation presented the FOMC with an opportunity to ‘pause’ its current rate hike policy.
- The question that we wrestle with is when do they pivot and decide that the interest rate level is as high as it is going to go.
- A visual inspection of the dollar and gold shows that the dollar peaked in September 2022 and gold bottomed around the same time.
- Gold has an inverse relationship with the US dollar so it should be the beneficiary of the dollar’s demise.
- Gold has an inverse relationship with the US Dollar so it should be the beneficiary of the dollar’s demise.