Earlier I suggested gold would be indicative of dumb money's sentiment r: the F_O_M_C's stance with regard to easing. This appears to be proof of that.
SPY in green, GLD in white. Pre-announcement there is an inverse relationship (red box)
Since the policy statement and as Bernie speaks, the correlation has flipped and gold is tracking the SPX.
Is interest rates about to start going up?
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Yes, I know - it does not make any sense - FED is about to cut
rates...but....real world interest rates are not always what FED wants it
to be.
5 years ago
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