Posts On Market Update

How Quickly Things Can Change

After seeing some moderate selling in early trade today, the gold market has been clawing its way back to nearly the unchanged level for the session. At the heart of gold’s reversal could be commentary from President Donald Trump. The President recently suggested that the U.S. was not going to follow up on previous discussions phase out tariffs along with China as part of the Phase 1 trade agreement gets ready for signatures. Not surprisingly, the gold market’s rise today happens to coincide with stocks... 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 |

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 |

A Divided Fed

The Federal Reserve elected to cut interest rates again by 25-basis points at the conclusion of its meeting this week. The committee voted in favor of the cut by a margin of 7-3. The split may have been more than markets anticipated, and the Fed’s commentary was deemed to be not so easy when it comes to monetary policy. 7 of 17 FOMC members expect just one more rate cut this year. The not so dovish meeting sent stocks lower initially before they recovered. The... Continue Reading

Category |

Rapid Inflation Could Be Next

There has been no shortage of issues for global financial markets to contend with in recent months. An aging economic expansion and equity bull market, an accelerating global economic slowdown and the ongoing U.S./China trade war have been at the center of attention. At some point, the economic expansion and bull market in stocks will have run its course, as they always do. Likewise, the war on trade may not go on indefinitely, as it is in the best interest of both sides to come... Continue Reading

Category |

Appetite For Risk

The stock market has put together a decent run over the past week as investor appetite for risk has seen an uptick. Some optimistic commentary about the ongoing U.S./China trade war is the primary catalyst for equity gains this week, and investors are hoping that some significant progress may be made at the negotiating table in the weeks ahead. The stock market has a tendency to turn on a dime, however, and any negative developments concerning the trade war could send stocks sharply lower again... Continue Reading

Category |

Markets Can’t Have Cake and Eat it Too

The phrase “have your cake and eat it too” is commonly used to describe a situation in which people want the best of both worlds, or perhaps want to have two or more things that are incompatible. It can also be used to describe when people want more than what might be considered reasonable. The phrase simply alludes to the fact that you cannot have your cake and eat it too. Once you have eaten the cake, you can no longer have it. This is... Continue Reading

Category |

Building a New Base

The gold market has seen a bit of a pullback from recent 6-year highs. The metal dipped under the $1500 level yesterday before bargain hunters stepped in today to propel the market back above this key level. Recent price action suggests that the market may be in the process of building a new base which could potentially act as a new, major level of price support.  A series of higher lows also lends credibility to the notion that a firm uptrend is in place. Recent... Continue Reading

Category |