Tag Archive: central bank

Big Picture Is Bullish

The gold market is working hard today to recover some of yesterday’s declines. Oddly enough, the yellow metal is stronger even as stocks are also moving mostly sideways today. Although this may come as a significant surprise to many, it really shouldn’t. The gold market could very well move higher along with stocks in the weeks and months ahead. The U.S. Fed recently suggested that it would not look to hike rates again until there is a pickup in inflationary pressures. The central bank has... 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 |

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 |

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

Category |

New Highs May be Seen

The gold market is slightly lower in early grade Monday, but remains firmly above the key $1400 level. The market may simply be taking a breather before it begins another leg higher. Overnight, fresh GDP data out of China showed the slowest growth in the country in 27 years. The market reaction has been muted thus far, however, as some key data points for June were more encouraging than expected. The significant slowdown in GDP is clearly a cause for concern, especially at a time... Continue Reading

Category |

All Eyes on the Fed

This week features the release of the latest FOMC meeting minutes as well as testimony before Congress by Fed Chief Jerome Powell. The minutes will be released on Wednesday, while Powell’s remarks will begin Wednesday and conclude Thursday. The latest meeting minutes will likely take a back seat to Powell’s comments, and investors are hoping that the Fed Chief will provide some clarity about the central bank’s plans regarding rates going forward. Expectations for an interest rate cut have been dialed back in recent days... Continue Reading

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

U.S. Hardline Stance May Cause Dominos To Fall

The current state of geopolitics and the global economy warrant caution. Stocks are moving slightly higher in early action on Monday as the markets seem to be pinning their hopes on the Fed and another series of rate cuts. The Fed will be meeting this week, and although no action is expected on Wednesday, the central bank could lay the groundwork for the first rate cut in over 10 years next month. There are currently several issues at work, however, that could potentially set off... Continue Reading

Three Reasons Another Recession is Inevitable

Some analysts in recent months have suggested that the U.S. could be headed for another recession. The ongoing U.S./China trade war, fading effects from tax cuts and government spending and an aging expansion are just a few of the reasons cited. Other analysts have suggested that recent economic weakness and market declines are normal and simply some bumps in the road. Whether the next recession hits this year, next or in the next few years, it will arrive. Here are three simple reasons that a... Continue Reading

Central Bank Demand for Gold Surging

Central bank demand for gold reportedly hit the highest levels in 2018 since the end of the Bretton Woods system of dollar convertibility in 1971. With some analysts referring to gold as some type of meaningless relic, this begs the question of why the biggest financial institutions on the planet are looking to acquire even more gold. Store of Value Gold has a very long history as a reliable store of wealth and value. In the post-Bretton Woods era and without a return to some... Continue Reading

Category |