Gold continues the trajectory higher. We have been outlining our logic on gold and the fear component, most recently yesterday.

As we await the Fed verdict later today, we would like to show the below chart.

It shows the Fed Funds Target Rate versus Gold. Fed has hiked nine times since 2015. 8/9 of the last Fed hikes, gold put in a spike move higher.

As gold has been moving up, the gold miners have really been spiking higher. GDX US is up 8-9% in a few days. The ETF closed right at the first resistance after the break out move higher. Next level to the upside is the 23 area.

The GLD US versus GDX US ratio has moved rather quickly over the past week. Let’s see what Fed says in a few hours.

Source; charts by Bloomberg