The gold and silver prices have held up remarkably well compared to the broader markets as they continue to sell off today. While the Dow Jones Index is down more than 250 points, gold and silver are just slightly lower. However, gold has traded in the green several times today.
If we look at the 5-minute chart, we can plainly see that gold and silver have been trading in an opposite trend to the Dow Jones. As the Dow declined, the precious metals Silver ETF (SLV) and Gold ETF (GLD) share prices went higher. Full Story
By: Adam Hamilton, CPA, Zeal Research - 2 August, 2019
This year’s autumn-rally setup is well on the bearish side with gold-futures speculators effectively all-in long upside bets and all-out short downside bets. Their buying firepower is nearing exhaustion, leaving vast room to sell and hammer gold and thus gold stocks lower. That remains a serious risk if the right catalyst arises to ignite cascading selling. But the power of new-high psychology to attract investors is strong.
Investment capital inflows can drive gold higher for many months or even years, regardless of what gold-futures speculators are doing. The higher gold rallies, the more investors want to own it. The more they buy, the higher gold climbs. Buying begets buying, and nothing fuels this virtuous circle like new secular highs. So while we need to remain wary entering the autumn rally relatively high, it could certainly still happen. Full Story
The price of gold has rejected numerous attempts by the banks to hammer the gold price below $1400 using paper gold derivatives on the Comex and the LBMA. I have not seen gold behave with such resiliency in the last 19 years when the Comex banks have an extremely large short position in Comex paper. Full Story
Following months of cajoling by the White House, the Federal Reserve finally cut its benchmark interest rate. However, the reaction in equity and currency markets was not the one President Donald Trump wanted – or many traders anticipated.
The Trump administration wants the Fed to help drive the fiat U.S. dollar lower versus foreign currencies, especially those of major exporting countries.
Instead, the U.S. Dollar Index rallied throughout July ahead of the expected rate cut and continued rallying after Fed chairman Jerome Powell made it official on Wednesday. Full Story
The title of this post states that the gold miners do not mind the fade in inflation expectations at all and the charts above – and indeed the components of the Macrocosm itself – explain exactly why.
Ironically, had inflation broken out (with silver leading gold) we’d have probably remained bullish the gold sector (to technical targets, at least) while becoming less fundamentally positive. That’s the way bull phases roll in the gold stocks. They lead the whole macro mess out of deflationary situations well before the rest of the play catches on in other assets and markets. Full Story
There was massive short covering in yesterday’s gold rise. Yen crashed against the US dollar while gold rose. This is safe haven demand is nothing else. Trump said that he will impose additional ten percent tariff on the remaining $300 billion Chinese imports from September 1. There is recession fears and more global trade war fears. Gold is bound to rise more. Chinese retaliatory action will be closely watched. Trump and his trade war with other nations will also be an issue. Gold is getting the benefit of safe haven demand. Full Story
Unemployment in the U.S. is at a half-century low and the S&P 500 is trading at near-record highs. Nevertheless, the Federal Reserve today trimmed interest rates for the first time since the financial crisis on stalled manufacturing growth and an anticipated world economic slowdown.
The easing cycle may be the catalyst gold needs to outperform the market and retrace its monster bull rally in the 2000s, according to Bloomberg Intelligence strategist Mike McGlone. Full Story
As an official interest rate which affects all other US interest rates including bank-to-bank overnight loans, the US Federal Reserve uses changes in its fed funds rate to manipulate US economic growth, but its impact is even more far-reaching, influencing as it does the relative strength of the US dollar versus other currencies, and the interest rate decisions of the world’s other major central banks.
Confirmation of the cut – officially called a policy action – came at the end of the Fed’s two-day July meeting. In the hours before the Fed announcement, Comex gold dropped a few dollars to the $1420 range and the US dollar went higher, looking very like paint taping to make the market’s reaction to the announcement more muted. Full Story
Traders and markets were way ahead on interest rate cut stance. The Federal Reserve chairman muted all those who were hyper on extreme interest rate cut outlook. Powell said that the Federal Reserve will not start a cycle of interest rate cuts. Markets are now expecting one more interest rate cut in the final quarter of the year. Full Story
By: Stewart Thomson, Graceland Updates - 31 July, 2019
- Is gold finally due to swoon or can it continue to rally?
- The naysayers point to overbought conditions on the weekly charts, COT reports showing a mammoth short position held by the commercial traders, and the upcoming stock market “crash season”.
- The bulls point to a peaking US business cycle, inflationary and growth-destructive tariffs, a tight job market, an increasingly dovish Fed, strong central bank buying, de-dollarization, out of control government spending and debt, and Chinese investors buying more gold instead of investing in their weak stock market. Full Story
By: Steve St. Angelo, SRSrocco Report - 30 July, 2019
After waiting for seven years since the silver price traded above $30, precious metals investors are wondering if 2019 will be the year that shiny metal finally enters into a new bull market. However, for silver to enter into a new bull market, certain signs and indicators need to take place. I discuss this in detail in my latest video.
Interestingly we have seen several precious metals analysts suggest that something quite interesting is taking place in the silver market. Full Story
“Follow the trend lines, not the headlines,” President Bill Clinton once said. I’m a news junkie myself, but I guarantee you I wouldn’t be where I am today had I based every one of my investment decisions on what the talking heads tell me.
The headlines might make it feel like our lives are progressively getting worse sometimes, but the trend lines tell a different story. We’re living longer, healthier and freer lives than we were in years past.
JPMorgan research shows that no reserve currency lasts forever and many are questioning how long the U.S. dollar’s reign will last. Reserve currencies tend to be a reflection of markets that have the best prospects. JP Morgan sees the younger demographics and proliferating technological know-how of the Asian economic zone as having the best prospects with 50 percent of global GDP and two-thirds of global economic growth being the strongest contender. With $30 trillion in middle-class consumption growth forecast between 2015 to 2030, only $1 trillion is expected to come from Western economies. The bank sees the dollar deprecating over the medium term due to these structural reasons as well as cyclical impediments, which is why they recommend diversifying into developed markets and in Asia, as well as precious metals. Full Story
Now that it seems to be open season for central banks in Europe to begin buying gold, the ECB still has an input on the subject, saying its governing council update, also 26th July, that the decision not to renew the CBGA “is without prejudice to each national central bank’s competences regarding the management of its own gold reserves.”
The CBGA member press releases acknowledge the eagerness to buy gold, saying that “central banks and other official institutions in general have become net buyers of gold” and that “the signatories confirm that gold remains an important element of global monetary reserves, as it continues to provide asset diversification benefits.” The Swiss National Bank press release adds some flavor claiming that the “gold agreement [is] no longer necessary due to changes in market conditions and in central bank activities.”
As none of the CBGA cartel central banks “currently has plans to sell significant amounts of gold“, has it been a case of gold buying envy as Russia, China and even Poland and Hungary have piled into the yellow metal? It would certainly seem so. Full Story
By: Chris Waltzek Ph.D., GoldSeek Radio - 28 July, 2019
- This is not a time for financial complacency notes, amid mountains of national debt on a global basis and central banking intervention on an epic scale. - The scope and scale of the impending financial deluge will be incomparable to anything in history. - The entire system of over 7 billion individuals loses confidence simultaneously in the fiat money system. - While the precise time when the system will implode, but the outcome could rival the fallout of the Civil War, the Great Depression and WW I and WW II. Full Story
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