Posts by Kirill Zagalsky

The Case for Gold Has Never Been Stronger

The last few days have shown what can happen as investors get nervous and even start to panic. Yesterday’s declines in equity markets, which were over 3 percent, were the largest drop so far this year and showed just how seriously investors are taking the ongoing U.S./China trade war. the case for gold has never been stronger. As President Trump implements additional 10 percent tariffs on another $300 billion of Chinese goods, China has responded by devaluing its currency. The yuan moved past the key... Continue Reading

Could the Fed Reserve Cut Mark the Top for Stocks?

The Federal Reserve cut the Fed Funds rate today by 25-basis points in a move that was widely expected. Markets had been increasing calls for a rate cut from the central bank, and President Trump has made it no secret he thinks the Fed is on the wrong track and wants lower rates. Over the last nine years, markets have become increasingly accustomed to the Fed or other central banks riding to the rescue at any sign of market volatility or significant risk aversion. Central... Continue Reading

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A Lot Going On

Stocks have been on the rise in recent days as investors look forward to a rate cut by the Fed at the end of the month. Although expectations for a 50-basis point cut have declined significantly, such a move may still be on the table. If the Fed decides to cut by 25-basis points, that cut could be just the first in a series of cuts the Fed may have to make in the months ahead. Regardless of what the Fed does or doesn’t do,... Continue Reading

Central Banks Keep Buying

Global central banks have continued to keep buying gold, adding even more of the metal to their portfolios in June. The month reportedly saw reserves climb by 8 percent, the largest monthly increase in three years, as trade and geopolitical tensions heated up. Countries such as Kazakhstan, Russia and Turkey all added more of the metal to their reserves, while China also previously reported another large increase in its holdings. The recent trend in additions could be set to continue, especially against the current backdrop... Continue Reading

Gold to Remain Well Supported

This week, investors have gotten the latest FOMC meeting minutes and have also been hearing Congressional testimony from Fed Chief Jerome Powell. Stocks are making record highs as Powell’s commentary has been deemed to be dovish. Markets are now expecting a rate cut this month and even additional rate cuts in the months ahead. The gold market is likely to remain on the offensive with or without higher stocks. An environment of falling interest rates and lower yields could force an increasing number of investors... Continue Reading

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Focus on the Long Haul Buying Opportunities

The gold market is seeing some solid selling pressure today after the latest non-farm payrolls data cast some doubt on a Fed rate cut this month. Prices have dipped back down to the $1400 per-ounce area and the selling appears to have run its course. Sharp dips like that being seen today can potentially provide excellent buying opportunities. A dip of $20, $50, even $100 per-ounce is inconsequential over the long run and may provide investors with an opportunity to dollar-cost average. The bigger picture... Continue Reading

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Are Stocks Making a Bull Trap?

The benchmark S&P 500 hit a fresh all-time record today. Stocks and risk appetite are on the rise as investors remain hopeful that a U.S./China trade agreement will be reached. Over the weekend, President Trump met with Chinese Leader Xi Jinping at the G20 meetings in Japan, and the two leaders essentially called a truce. The U.S. agreed not to raise levies on additional Chinese goods, while China reportedly agreed to purchase more U.S. agricultural products. With the two sides seemingly back at the bargaining... Continue Reading

The Market Has Spoken: It’s Time to Buy

The gold market has seen quite a run higher in recent action in what could be the beginning stages of a major and protracted bull market. The market recently hit 6-year high and strong fundamentals as well as an improving technical posture could keep the metal on the offensive. Markets do not typically go straight up or straight down, however, and now may be the ideal time to look at buying big on any dips. The gold market is benefiting from several key economic and... Continue Reading

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Wait, What?

The highly anticipated Fed policy meeting has now come and gone, with Fed Chief Jerome Powell set to deliver his press conference. The central bank voted by a margin of 9-1 to hold the Fed Funds rate steady. The central bank did, however, still hint at the potential for rate cuts should conditions warrant such a move. The FOMC removed the word “patient” from its outlook, in a move that could signal a large degree of flexibility by the central bank. Some analysts have suggested... Continue Reading

Get Ready for Blast-Off – The Market’s Technical Posture

After putting together an impressive string of gains recently, the gold market has pulled back a bit as stocks attempt to regain their footing. Weakness in key data points recently has renewed investor hopes for a rate cut from the Fed, and some analysts are now calling for a series of cuts. The stock market appears to have entered a phase in which bad news is good news, and the Federal Reserve may once again have to turn on the easy money spigot to keep... Continue Reading

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