One more Dance before Midnight Strikes

By Gary Dorsch Dec 16 2009 2:17PM www.sirchartsalot.com

"If history is a guide to the future, the gold market has been able to climb sharply higher, alongside a rising fed funds rate. The Fed’s last rate hiking cycle, - starting in June 2004, - and beginning with the fed funds rate at 1%, wasn’t able to cap gold’s powerful advance thru May 2006, until the fed funds rate was lifted to 5.25-percent. Thus, for two-years, gold rose 40%, alongside a 425-basis point increase in the fed funds rate, since the Fed was lingering far behind the inflation curve. "