by Mike Swanson, MineWeb.com:
Yesterday the stock market and gold prices fell into their closing bells after the release of minutes of the Federal Reserve’s April meeting.
The Federal Reserve did not raise interest rates at that meeting, but the minutes showed that some Federal Reserve Board members hope to raise interest rates in June.
Back in December the Federal Reserve raised interest rates and predicted that it would raise rates four times in 2016.
Then the stock market dumped in January and banks in Europe showed signs of stress so the Federal Reserve got scared and was unable to raise rates at any of its meetings so far this year.
Fed fund futures contracts also pushed out any rate hikes to the Fall.
After the release of yesterday’s minutes though CNBC talking heads began to talk as if the economy were about to boom in the United States in the coming weeks and rates could go up in June or July.
However, the Fed fund futures contracts are still pricing in only a 28% chance of a June interest rate hike.
The thing is though that the media news and quick price drop in gold has scared a lot of people out of gold.
Iím hearing from people in a pure panic over gold.
Some are long and wondering if they should sell and try to buy in at a cheaper price.
Some watched it go up and then bought in at the top and are now on losses feeling like they are getting punched and afraid that the Federal Reserve is going to demolish gold.
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