The next Federal Reserve policy meeting is not until December 14. Nonetheless, the US 3-Month Treasury Bill market is already pricing in a hike to the key interbank lending rate. Why is this important for precious metals investors? Because it was the first Fed Rate hike in nearly a decade last December that marked major turning points in several interrelated markets, including the 2015 bottom in gold and silver prices. The graph below shows the 3-Month Treasury Yield since 2014. Note how the yield on this short-term government debt spiked higher to break out of the prior trading range in November 2015 (first green highlight), moving from 0.0% to 0.28% by early December. The 3-month Treasury market effectively predicted that the Federal Reserve Board would vote to raise the Fed Funds interest rate two weeks before the central bank actually decided to do so. For reference, the blue dashed line shows the day, December 16, on which the Fed released its...
from GoldBroker.com https://www.goldbroker.com/news/second-fed-rate-hike-will-gold-prices-spike-1057
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