Tag Archive: eu

EU Slowdown May Be Worse Than Expected

It’s no secret that the Eurozone continues to struggle with a slow economy. The EU has seen many of the ups and downs that have been seen in the U.S. in recent years while also having to contend with numerous other issues such as massive sovereign debts and policy disagreements. Now, the ECB has slashed its growth and inflation forecasts for the year while also lowering the outlook for 2020 and 2021. This would seemingly acknowledge the fact that the slowdown being seen in Europe... Continue Reading

Get Ready

The gold market is showing some significant strength today as the metal has once again moved back over the psychologically important $1200 level. It’s no secret that the dollar index has weighed heavily on gold in recent months, but there seems to be increasing concerns that the greenback is not likely to maintain its recent strength. With the recent Fed rate hike having come and gone, and with expectations of another hike before the end of the year already factored into prices, the gold market... Continue Reading

Further Dollar Strength Could Trigger the Next Major Debt Implosion

The issue of global dent has been widely talked about for some time. Unfortunately, sometimes the damaging effects of massive debt are ignored due to a “borrow now, worry about it later” mentality. The EU has had more than its share of debt problems in recent years, with the financial crisis in Greece having had a significant impact on global financial markets. Other nations have issues as well, and Italy has once again become a primary area of focus. Italy is one of the most... Continue Reading

Is the EU Headed For More Trouble?

Just a few years back, the EU, and Greece specifically, dominated the financial media as the nation headed for a major default and bankruptcy. Sovereign debt issues have been an area of focus in the region for some time, and there has been ongoing discussions about the health of the union for years. Those discussions are likely to pick up in pace once again, as recent developments in Italy are a major cause for concern. The country is headed for new elections later in the... Continue Reading

Geopolitics Remain a Key Driver

Gold has gotten the week off to a strong start, moving sharply higher on Monday and seeing follow-through upside on Tuesday. The metal is likely seeing renewed buying interest as the geopolitical landscape continues to warrant risk aversion. The recent vote by Catalonia to secede from Spain is just one of several key issues that could potentially fuel risk aversion. Over the weekend, thousands of Spaniards protested the potential move, and it remains unclear if the region will in fact break away from the rest... Continue Reading

Does Germany Know Something the Rest of Us Don’t?

In recent months, Germany has reportedly repatriated half of its gold reserves ahead of schedule. Bundesbank confirmed back in February that it had already moved 583 tons of gold out of New York and Paris. Germany’s plan to hold half of its gold in Frankfort is several years ahead of schedule. Many may be wondering why… There are numerous theories behind the rapid repatriation of the country’s gold. Some have suggested that Germany is looking to keep its gold close in case it is needed... Continue Reading

More Signs of an EU Breakup?

Think right now with rising stocks, rising interest rates, better economic data and a more hawkish Fed that there isn’t good reason to own gold? Think again… Spreads on Credit Default Swaps, or CDS, are rising for some EU countries. This would seemingly indicate that traders and investors may be getting more nervous about a potential breakup of the union, or of a key country deciding to leave as Great Britain did. A rise in these swaps simply means that more insurance is being purchased... Continue Reading

Let the Money Printing Continue

Much of the recent talk in the financial media has been centered on Donald Trump taking office and what the new Presidential administration may be able to accomplish. There has been much talk of pro-growth policies, rising inflation and higher interest rates. Although the U.S. is no longer actively engaged in QE, and although the U.S. has begun tightening interest rates, such is not the case in other parts of the world. Ultra-low monetary policies remain in place in several key economies and central banks... Continue Reading

More Gains Ahead?

The gold market has once again started the New Year off on the right foot. Gold is seeing some solid buying interest to start the year as stocks and the dollar appear to be losing upside momentum. Why might gold be trending higher in spite of stocks being near all-time highs, rising interest rates and a dollar at the highest levels seen in many years? In our view there are numerous reasons that the yellow metal is likely to be bought at current levels. Here... Continue Reading

Better Times Ahead For Gold?

In spite of the declines seen in recent weeks following Donald Trump’s Presidential election victory, gold and silver still managed to put together a solid year of gains. Although these key precious metals remain vulnerable to further selling pressure, long-term buyers and bargain hunters may step in at or around current price levels, helping the metals find what may be a long-term bottom. Numerous issues have been cited for gold’s recent weakness, including stronger stocks, rising interest rates, a higher dollar index and economic optimism.... Continue Reading