Not necessarily. Trying to wait out the Fed could prove to be a huge mistake.
Consider that the gold market reached its last major bottom in December 2015 at around $1,050 an ounce. That coincided with the onset of a rate-raising campaign.
Previously, a third round of Quantitative Easing was announced in September 2012.
Many analysts assumed that QE3 would provide an immediate boost to gold and silver prices. Instead, the metals markets declined for several months following the Fed’s announcement.
The lesson is that precious metals markets don’t move in lockstep with Fed easing or tightening. Gold and silver prices show virtually no correlation to nominal interest rates.
What matters is real interest rates – meaning, interest rates relative to inflation rates. Real rates are near their most deeply negative levels ever, thanks to the recent inflation spike. And real rates can remain negative throughout a Fed tapering and hiking campaign.