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Gold has performed well in past four rate hike cycles

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U.S. Global Investors/Frank Holmes/1-31-2022

Ed Stein cartoon of Kermit and Miss Piggy in a stock market moment
“It’s a smart move. Gold has historically performed well in times of not only higher inflation but also rising rates, according to the World Gold Council (WGC). If we look at the past four Fed tightening cycles, between February 1994 and December 2015, the yellow metal underperformed in the months leading up to the Fed’s first rate hike but then outperformed U.S. stocks and the dollar six months and one year following liftoff.”

USAGOLD note: As Holmes explains, the data does not support the widely held notion that gold will be hurt by rising rates. He says that now – before the hiking cycle begins – may be the best time to buy gold.

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