Unexpected increases in Fed funds rate prompt gold prices to rise
A Federal Reserve Bank of Atlanta working paper examining futures data between 1998-2008 finds that unexpected changes in the Fed's monetary policy can influence commodity prices.
Monetary Policy Surprises, Positions of Traders, and Changes in Commodity Futures Prices by Nikolay Gospodinov and Ibrahim Jamali finds that unexpected increases in the federal funds rate were associated with rising prices for gold and platinum. Meanwhile, surprise cuts to the policy rate increased prices for crude and
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