The middle of June is upon us, which means that it’s time for investors around the world to wait and watch as the U.S. Federal Reserve considers raising interest rates.
A pessimistic economic outlook can be good for a hedge investment like gold, particularly as investors who are waiting for the Federal Reserve to make a move see that the economy is a little too fragile to consider raising interest rates. That’s the conclusion over at MarketWatch: economic news has been just sour enough to cast some doubt on whether the Federal Reserve will take action this month.
In the wake of that potential indecision is the prospect of gold’s price, which has rebounded a bit. Perhaps most telling is its performance early on today, with gold currently at a $10 spike as it stays in the upper $1,200 per troy ounce range. If investors are tipping their hand and showing that they believe the Federal Reserve won’t raise interest rates, most of the macro indicators we’ve seen thus far appear to be consistent with that conclusion.