Tag Archive: weaker dollar

6-Year Highs Just the Beginning

The gold market recently powered to a 6-year high as the notion of a dovish Fed and easy money policies gained further steam. The market saw a buying frenzy take prices straight to the $1450 region, a level which, if breached, could signal a much more significant upside rally. The market may simply be getting started in the early stages of the next great bull market which could take prices back to all-time highs near $2000 per-ounce and well beyond. There are numerous factors that... Continue Reading

The Market Has Spoken: It’s Time to Buy

The gold market has seen quite a run higher in recent action in what could be the beginning stages of a major and protracted bull market. The market recently hit 6-year high and strong fundamentals as well as an improving technical posture could keep the metal on the offensive. Markets do not typically go straight up or straight down, however, and now may be the ideal time to look at buying big on any dips. The gold market is benefiting from several key economic and... Continue Reading

Category |

Get Ready for Blast-Off – The Market’s Technical Posture

After putting together an impressive string of gains recently, the gold market has pulled back a bit as stocks attempt to regain their footing. Weakness in key data points recently has renewed investor hopes for a rate cut from the Fed, and some analysts are now calling for a series of cuts. The stock market appears to have entered a phase in which bad news is good news, and the Federal Reserve may once again have to turn on the easy money spigot to keep... Continue Reading

Category |

Risk Aversion Accelerates – This Could Be It

The gold market is finally seeing some significant upside as risk aversion accelerates. The metal has now broken out of its recent trading range and could potentially set its sights on a new high for the year in the weeks ahead. There are numerous issues behind the recent ascent, and many of these issues could potentially fuel the next major global recession. The ongoing U.S./China trade war appears poised to continue. After a deal was reported to be close in recent weeks, both sides have... Continue Reading

War on Trade Could Force the Fed’s Hand

Not long ago, the Federal reserve had taken a decidedly hawkish approach towards monetary policy. The Fed seemed confident in the economy and was ready to continue the current cycle of interest rate hikes. Market dynamics have shifted significantly in recent months; however, and thus the Fed may be forced to reverse course and start cutting rates again. The market has already priced in a 25-basis point hike by the end of the year. With the latest Fed meeting minutes looming this afternoon, the question... Continue Reading

6 Reasons We Could See a Weaker Dollar

As a dollar-denominated commodity, the gold market can be heavily influenced by strength or weakness in the greenback. Dollar strength may weigh on gold as it makes the metal relatively more expensive for foreign buyers, while a weaker dollar may boost the price of gold as it makes the metal relatively less expensive. The relationship between gold and the dollar, and all other paper currencies for that matter, is so important that investors often buy the metal as a hedge against a weaker dollar. Although... Continue Reading

Category |

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

More Symptoms of Economic Trouble

Today, the Institute for Supply Management reported that its manufacturing purchasing managers index fell in February to the lowest level since November 2016. Not coincidentally, it is not the only economic indicator to decline to the lowest levels since that time. Could this mean more symptoms of economic trouble? Of course, November 2016 was when Donald J. Trump was elected President in a victory that caught many off-guard. Since he has been in office, Trump has enacted significant legislation. His administration has performed significant deregulation,... Continue Reading

How About 55% Declines for Stocks?

Love him or hate him, President Trump has accomplished a great deal in his first two years in office. Stocks are near record highs, unemployment is near a 50-year low and the economy is seeing real growth. Trump, who has never been one to shy away from voicing his opinions, and he recently tweeted: ‘Had the opposition party (no, not the Media) won the election, the Stock Market would be down at least 10,000 points by now. We are heading up, up, up!’ – President... Continue Reading

Don’t Say You Weren’t Warned

The last several weeks have seen developments on multiple fronts that could potentially shape the next major market meltdown. The Fed’s reluctance to continue shrinking its balance sheet must be at the top of the list. The writing on the wall has never been clearer: Stock markets cannot maintain current levels and wouldn’t have gotten here in the first place without the massive stimulus efforts of the Fed. In other words, stocks are currently trading at “artificial” levels. Stock valuations have not reached current levels... Continue Reading