{"id":99781,"date":"2016-12-19T10:11:36","date_gmt":"2016-12-19T15:11:36","guid":{"rendered":"http:\/\/countingpips.com\/?p=99781"},"modified":"2016-12-19T10:11:36","modified_gmt":"2016-12-19T15:11:36","slug":"interest-rates-negative-after-fed-hike","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2016\/12\/interest-rates-negative-after-fed-hike\/","title":{"rendered":"Interest Rates Negative after Fed Hike"},"content":{"rendered":"<div id=\"inves-4162423552\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">December 19, 2016<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p><b>By Money Metals News Service<\/b><\/p>\n<p>Precious metals markets enter the last trading week before Christmas near multi-month lows. Gold and silver succumbed to another round of selling last Thursday following the Federal Reserve&rsquo;s rate hike announcement.<\/p>\n<p>Bulls are hoping for a Santa Claus rally to take metals into year&rsquo;s end on a positive note. Bears say &ldquo;bah humbug&rdquo; and will aim to keep the intense selling pressure on in the futures markets.<\/p>\n<p><img decoding=\"async\" class=\"img-reponsive content-img-right\" src=\"https:\/\/www.moneymetals.com\/uploads\/content\/dec-2016-dollar.jpg\" alt=\"US Dollar Index\" \/><\/p>\n<p>The U.S. Dollar Index now trades at a 14-year high.<\/p>\n<p>It looks impressive &ndash; until you consider all the other currencies that trade against the dollar. Dollar &ldquo;strength&rdquo; is really just an expression of the fact that other currencies are weak.<\/p>\n<p>The strong dollar isn&rsquo;t real, and neither are the Federal Reserve&rsquo;s rate hikes. Yes, Fed policymakers did just bump up their benchmark rate by a quarter of a percent. But the Fed&rsquo;s two measly moves over the past year have NOT raised short-term interest rates above the inflation rate. <u>Therefore, rates remain negative in real terms, which is bullish for precious metals<\/u>.<\/p><div id=\"inves-3737441946\" class=\"inves-in-content inves-entity-placement\"><hr style=\"border: 1px solid #ddd;\">\r\n<div id=\"inpost_ads_header\">\r\n<p style=\"font-size:10px; float:left; color:#666;\">Free Reports:<\/p><\/div>\r\n<div id=\"inpost_ads\"> \r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/1ApBOV\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2018\/06\/graph_techs_PD.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t     <a href=\"https:\/\/goo.gl\/1ApBOV\"><b><u>Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p><br><br>\r\n<br>\r\n<br>\r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/f3RrHX\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2019\/01\/cot_pie_80.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t    <a href=\"https:\/\/goo.gl\/f3RrHX\"><b><u>Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p><br><br>\r\n<\/div>\r\n<hr style=\"border: 1px solid #ddd;\">\r\n<br><\/div>\n<p>Even if Janet Yellen pushes through three rate increases in 2017, as she now suggests she will, the result will still be an interest rate that sits below the Fed&rsquo;s own 2017 inflation projection of 1.8%.<\/p>\n<hr>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/countingpips.com\/articles-analysis\/wp-content\/uploads\/2016\/03\/money-metals.png\" align=\"left\" height=\"79\" width=\"80\"> The Money Metals News Service provides market news and crisp commentary for investors following the precious metals markets.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Money Metals News Service Precious metals markets enter the last trading week before Christmas near multi-month lows. Gold and silver succumbed to another round of selling last Thursday following the Federal Reserve&rsquo;s rate hike announcement. Bulls are hoping for a Santa Claus rally to take metals into year&rsquo;s end on a positive note. Bears [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-99781","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/99781","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=99781"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/99781\/revisions"}],"predecessor-version":[{"id":99782,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/99781\/revisions\/99782"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=99781"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=99781"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=99781"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}