Fed rate hikes push gold into bullish territory

THE Fed has done it again, lifting gold price on the day of the rate hike.

On March 21, the Fed decided to raise the Fed Funds Rate (FFR) to 1.75 per cent from 1.50 per cent. Instead of seeing a rally in the US dollar and a sell-off in gold, the opposite happened where gold bottomed out again on the rate hike day.

Part of the reason for that was due to the pricing-in mechanism of the mark…