The Fed raises rates when it is concerned about inflation. Yesterday the fed so indicated yet chose a neutral bias with respect to rates. If your paper is worth less gold provides a hedge.
Low unemployment suggests the economy could be heating up. Increasing unemployment is suggestive of a slowing economy which is usually met with the need to provide liquidity by lowering interest rates thereby increasing borrowing leqading hopefully to economic expansion.
Employment is a lagging indicator.
Increasing unemployment is suggestive of a slowing economy which is usually met with the need to provide liquidity by lowering interest rates thereby increasing borrowing leqading hopefully to economic expansion.
So leaving rates the same is good for gold but cutting them is bad for gold?