Gold fell out of favor by 12% in the latter half of 2015… managing to rally some 23% to 1,287 highs by March 2016.
As a result, gold would become the best-performing asset of the year… The SPDR Gold Shares ETF (GLD) would rally 20%. The Market Vectors Gold Miners ETF (GDX) would soar 69%.
But as of last week, gold began to lose some of its shine, as Federal Reserve officials hinted at the possibility of a rate hike as early as April 2016.
Hopefully, that won’t happen, though.
It’s still far too soon to raise rates. The U.S and global economies aren’t strong enough for another hike, or another January 2016-like sell-off that wiped trillions off of global and U.S. markets…
Unfortunately, Atlanta Fed president Denis Lockhart indicated that sustained economic growth could justify action in April.
“In my opinion, there is sufficient momentum evidenced by the economic data to justify a further step at one of the coming meetings, possibly as early as the meeting scheduled for end of April,” Lockhart, as quoted by Market Watch.
Perhaps he’s not watching the same economy we are…