Wan Kaizi:10.24How the Fed's interest rate hike affects the trend of gold and silver prices

With the recent expectation of the Federal Reserve raising interest rates heating up, silver prices have been continuously falling and maintaining a low consolidation trend. Today, Wan Kaizi will discuss with everyone how the Federal Reserve raising interest rates will affect the trend of silver prices?More operation skills focus on the official account; Natural gas spot guidance.
　　
　Firstly, the Federal Reserve can abandon its interest rate hike plan or further lower interest rates. However, due to the current Federal Reserve funds rate approaching zero, rate cuts cannot significantly boost the economy. The departure of the Federal Reserve policy is beneficial for precious metals such as silver. Due to the recent pressure on silver, it mainly comes from the expectation of the Federal Reserve raising interest rates.
　　
Secondly, the Federal Reserve can continue its "forward guidance" policy, convincing investors that short-term interest rates will remain low and affecting the long-term yield curve. Although this may be effective, the market currently has lower expectations for interest rates. However, the dovish remarks of the Federal Reserve may be beneficial for silver, as the Fed's open communication operations will have a boosting effect on silver prices.
　　
Thirdly, the Federal Reserve can restart quantitative easing policy, which may be an expanded version of itQE. Yellen isJackson HoleAt the meeting, it was said that decision-makers should consider "purchasing a wider range of assets". At present, the European Central Bank is buying corporate bonds, the Bank of Japan is buying stocks, and the Federal Reserve may consider these potential options. However, the next roundQEThe effect is likely not as good as before, as the Federal Reserve's balance sheet has already accumulated a large amount of assets, and the US economy is already flooded with a lot of liquidity.
　　
In addition, if the Federal Reserve restartsQESo the current monetary policies of major developed countries will tend to be more consistent and loose, and the action power of the US dollar will weaken, which will benefit silver. Of course, investors should not forget that,QE3The actual impact on silver is negative, as the US economy began to recover. But if there isQE4If so, the outlook for the US economy will be even darker, which will provide positive support for silver. Follow the Sina blog "Wan Kaizi Investment and Financial Analyst" to gain more knowledge.
　　
Fourthly, instead of affecting short-term interest rates, the Federal Reserve should focus on long-term interest rates. For example, the Bank of Japan9Adjust the target towards the yield curve for the month, with the goal of10The yield of the one-year Japanese treasury bond bond is "locked" at zero. The Federal Reserve will closely monitor the effectiveness of the Bank of Japan's new policies and may one day replicate them. Importantly, the Federal Reserve has not yet implemented similar policies. stay1942-1951In the year, the Federal Reserve locked in the price of long-term US bonds. Under this policy, the Federal Reserve locked in the price of long-term bonds, but the size of bond purchases depends on market demand. In this situation, the Federal Reserve's asset size may rapidly expand, and this policy will undoubtedly support an increase in silver prices, as silver usually shines when real interest rates fall.
　　
Fifth, the Federal Reserve can introduce negative interest rates(NIRP)Policy. Assuming that negative interest rates can help the economy, some economists believe that this is equivalent to taxing bank reserves, which has limited practical help for the economy. Some radical economists even call for the abolition of cash. HoweverNIRPWill lower real interest rates, which will benefit silver, but Yellen doesn't seem to beNIRPFans, she's not hereJackson HoleAt the meeting, it was pointed out that negative interest rates are in the future policy toolbox.authority:zhetan1314，
　　
The above is Wan Kaizi's brief introduction to "how the Federal Reserve's interest rate increase affects the silver price trend". If investors want to know more about precious metal investment, please pay attention to the official account natural gas spot guidance!
　　
　This article is from the author's official account natural gas spot guidance, please indicate the source if reprinted. This article does not provide any express or implied warranties regarding the accuracy, reliability, or completeness of the content contained. Readers are advised to strictly control their positions for reference only, and to take full responsibility for this. Finally, I wish everyone a pleasant investment and a happy day!
　　
   (Text/Wan Kaizi