Another Sign of Strength

The gold market had a lackluster day overall. Prices were slightly higher in early afternoon trade as the bulls attempted to fight off numerous, bearish inputs that included stronger stocks, hopes for a U.S./China trade deal and more. The fact that gold did not, however, see any significant declines could be viewed as yet another important sign of strength. With stocks making a fresh all-time high today, selling was lackluster in the yellow metal. Stock investors appeared to be cheering on hopes for an initial... Continue Reading

Category |

More Trouble Ahead

The gold/copper ratio reached its highest level in three years in the third quarter, in what could potentially be a signal for price movement in the year or even years ahead. The World Bank recently, according to Kitco, said that the price of gold is likely to push back towards the $1600 region. There are numerous potential reasons for gold to push higher as copper and base metals push lower or remain stagnant. In fact, a price of $1600 per ounce represents a less-than six... Continue Reading

Category |

All-Time Highs May Weigh

The gold market, is often the case, has numerous, major implications working both for and against it. To start the new trading week, the market is having to grapple with fresh all-time highs in stocks. It’s really no surprise that fresh equity all-time highs might act as a downward pressure on gold and other hard asset prices. Investors are drinking the Kool-Aid currently, and word that “Phase 1” of a U.S./China trade deal is almost ready for signatures is playing with people’s emotions. Despite the... Continue Reading

Category |

Gold Slightly Lower

The gold market is getting hit hard in action on Thursday following significant weakness in the overnight session. The primary drivers behind the selling include weak data out of China, a higher dollar index and some corrective trade after recent gains. An apparent stall in U.S./China trade talks is not doing the market any favors, either. Chinese Data The Chinese economy continues to show signs of slowing as industrial output came out lower than expected. According to MarketWatch, the latest reading on industrial output rose... Continue Reading

Category |

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

Category |

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

Category |

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

Category |

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

Category |

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