Falling Interest Rates Indicate Gold, Silver Bull Market Looms in 2024
Chris Kimble | Dec 18, 2023 02:06
Investors are getting excited about the Federal Reserve’s interest rate pause and a soft landing for the economy.
Time will tell, but I do want to share with you a correlation that may be telling for the future of interest rates and perhaps precious metals.
Today we look at a chart highlighting the correlation of Fed Funds and 2-Year treasury bond yields.
As you can see, at critical turning points, the 2-year yield turned down ahead of Fed Funds. That appears to be happening again now. And right at prior highs (resistance).
Will the Fed follow interest rates like they have again and again and again and again?
If they do, we should see a falling interest rates environment develop and this is historically bullish for gold and silver.
Get The App
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.