Post-Fed gold price climb sparks mining stocks rally
Mining.comreports that aweek ago it looked as if gold’s 2017 rally was fizzling out and in danger of losing sight of the psychologically important ,200 an ounce level. A number of major gold stocks which had outperformed the metal and then some since the beginning of the year, fell back into the red for 2017.
Then the Federal Reserve acted on a telegraphed interest rate hike and accompanied the upward adjustment, only the third such move in a decade, with surprisingly dovish comments. Rate hike expectations for the rest of the year were dialled down despite signs that inflation could soon creep above the central bank’s targeted rate. The dollar fell and so did yields on US government bonds, exactly what the gold price needed.