Gold Slips Near $1130 Amid Rate Hike Clues

One would not be mistaken to call this a December-2015 redux, as the Federal Reserve Bank had indicated a likely three-step increase in 2016, at the same time a year ago.

Also, the new projections showed that the central bankers three quarter-point rate increases in 2017, up from the two seen in the previous forecasts in September, based on median estimates.

The second rate hike by the US Federal Reserve (Fed) in a decade last week may affect debts with variable interest rates, increase rates on credit cards, personal and vehicle loans and mortgages across the world.

The market is pricing in expectations that the Trump presidency will be bullish for the U.S. economy with a focus on rebuilding the nation's deteriorating infrastructure and bringing jobs back to its shores. However, benchmark bond yields spiked 43 bps (from 6.11% to 6.54%) and long tenor bonds have sold off more, suggesting a steepening and an attempt to reduce duration.

Time to scratch my contrarian itch.

The third factor is the strength of the U.S. dollar. For starters, will President-elect Trump's own party support tax cuts that increase the deficit?

She was moderately optimistic about job prospects in the United States in the years ahead even though the economy was growing slowly.

The Things You Should Never Buy At An Apple Store
Though, most stores are showing a February 8 pickup date, if you're extremely lucky you can have them available for pickup today. I braved the cold in New York City over the weekend while talking on the phone the whole way, with just AirPods in my ears.

The "Trumpflation" trade now looks even more compelling to investors and traders.

China's other options are no better.

What about the long-term factors that have pushed inflation down to its current low levels? The U.S. economy is cranking out new retirees at record rates and will continue to do so for years to come.

Forecasting expected US growth of around 2 percent for the next three years - compared with 2.4 percent in 2015 - the Fed wants to both be ready for inflation (if growth exceeds 2 percent) and if growth slows (expansion slows to below 1.5 percent). But it was the Dot Plot that caused the jitters in the financial markets.

This graph shows the yield for US 10-year Treasury bonds over the last 35 years.

The jobless rate for those with a bachelor's degree or higher is down to 2.3 percent, the lowest since 2008. You will see that the 30-year down trendline has been decisively broken. Higher rates in the USA would also exert upward pressure on the local rates, especially since portfolio inflows through the debt route have been significant since 2015 and considering the debt capital outflows seen this year. Those views are again being expressed following the presidential election, and in fact 10-year Treasury bond yields have risen by about.8 percent over the last several weeks, which equates to about a 7-percent fall in price. On Thursday alone, the all share index lost 1025 points or 2.02 percent. These new premiums are a result of regulatory changes and are explained here. At a mere 3.5% yield, full-taxable USA high grade corporate debt (with median duration) represents a higher yield opportunity than most of the world's bond market. So far, USA equities have rallied to all-time highs, gold has fallen almost every week since the election, and global equity and bond indexes are down significantly.