The Next Major Breakout is Brewing

The gold bulls have not had much to cheer about in recent weeks. After hitting a multi-year high, the market has eased back and seemingly entered a consolidation phase. The last several weeks have seen prices trade around the $1500 region, and although prices are currently below this support level, they have not seen a significant leg lower. The lack of upside in recent weeks is actually a positive thing, not a negative. The next major breakout is brewing. After reaching multi-year highs in recent... Continue Reading

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Major Hurdles Down the Road

There are numerous reasons to own a significant allocation in gold. In fact, given the current economic and geopolitical landscape, it has arguably never been more important to have a significant allocation in this key asset class. Although the list of compelling reasons to own the metal can be quite extensive, there are three major themes that investors need to consider as economic and geopolitical dynamics shift. The economic expansion and bull market in stocks is likely at or near its end. As the global... Continue Reading

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You Can’t Afford to Wait

Stock markets are sharply higher today as hopes for a U.S./China trade deal appear to be on the rise. The ongoing trade war has been a source of market volatility and significant shifts in sentiment for several months now. Although a deal may boost stocks in the short-term, there are still many major hurdles to an ongoing stock bull market. In fact, given the age of the bull market and the state of the global economy, the market is far more likely to be at... Continue Reading

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Fresh QE Has Arrived

The gold market rose to the highs of the day yesterday as markets reacted to commentary from Fed Chief Jerome Powell. Mr. Powell, at the annual NABE conference in Denver, said that the central bank will start expanding its balance sheet soon. He went on to state that the central bank also remains open to further rate cuts, citing risks to the global economy. Of note is the suggestion by Powell that this is in no way QE. He was quoted as saying “This is... Continue Reading

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Another Blow for the Dollar

The dollar is getting dumped by one of the globe’s largest oil producers and exporters. Russia’s Rosneft has decided that it will ditch the dollar in favor of euros for all deals going forward. The switch could potentially limit the effects of any sanctions imposed by the U.S. The company is Russia’s largest oil company, exporting some 120 million tons per year. The company’s move to euros is likely a direct response to threats of U.S. sanctions for its re-selling of Venezuela’s oil to Asian... Continue Reading

It’ll Keep Going

Recent pieces of key economic data have not painted a rosy picture. ISM manufacturing and services data have both shown significant declines, and the global financial market is now getting increasingly worried about the prospects for a recession in the U.S. Markets are now pricing in another Fed rate cut this month, and the central bank could even allude to further cuts if the data does not rebound. Although the risks of recession do appear to be on the rise, the next major recession could... Continue Reading

Manufacturing is Not Looking Good

Stocks are sharply lower today as another key piece of economic data shows significant weakness. The latest reading of the ISM Manufacturing is not looking good. It showed a drop to 47.8% from a reading last month of 49.1%. This reading marks the lowest level since June 2009, when the Great Recession ended. Consensus estimates were looking for a reading of 50.2%. The decline in activity is significant. Readings above 50 show expansion while readings below 50 show contraction. Only three of 18 sectors tracked... Continue Reading

Another Warning Sign

There has been no shortage of talk about the ongoing global economic slowdown. It seems that there is a constant supply of fresh data suggesting that the slowdown is not only ongoing but could be accelerating. An ongoing slowdown, or even recession, should not come as a huge surprise at this point. The current expansion has gotten quite long in the tooth and began to falter as soon as the Fed tried to normalize monetary policy. In what may be considered another shot across the... Continue Reading

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Buy the Dips

The gold market has seen some solid buying in recent weeks and has recently been taking a bit of a breather. The market has pulled back from its recent highs, and in early action today is seeing a retest of the $1500 level on the chart. A significant price dip is not only necessary at this point, but healthy as well. Markets do not typically go straight up or straight down, and the gold market is no exception with the dips. The market has been... Continue Reading

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No Shortage of Bullish Catalysts

The gold market has shown some significant upside in recent months, and with good reason. There are a variety of issues currently working in gold’s favor, and a strong fundamental and technical backdrop could keep the metal on the offensive. Regardless of whether the Fed cuts rates further or how much, the current state of the global economy and geopolitical landscape could be supportive for the metal and other hard assets. Here are three issues that may make now the ideal time to build a... Continue Reading