Commodity Trade Mantra

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Oil Prices Rocked By OPEC Reports - But Can’t Stay Low For Much Longer

Due to a very high degree of uncertainty surrounding OPEC intentions, there is likely to be further volatility in US trading on Friday and the potential for significant price gaps at the market open next week. Overall dollar trends will continue to have a significant impact on underlying crude oil prices. Remember, oil prices will not languish at the current depressed levels forever.

Silver and Gold Prices Supported by Weak Dollar - Rally Stalls Abruptly

A continuation of the defensive dollar tone over the past 24 hours, coupled with downward pressure on bond yields, has continued to provide underlying support to silver and gold prices. Analysts warn that continued upside for gold futures may be limited now that a Dec rate hike is firmly in play. According to Fed Fund futures, traders are pricing in a nearly 60% chance of liftoff by year-end.

Recycled Gold has met 60% of Indian Gold Demand on High Gold Prices

India has traditionally been one of the largest gold markets on the planet, second only to China. But, the high gold prices are threatening India’s status as a leading importer of gold. So much recycled gold has come into the system in the past few months that it has met 45% to 60% of the local gold demand. However, demand for gold in the US has risen 27% this year.

Will The Price of Silver Take a Breather Before Another Rally Kicks Off?

The price of silver has emerged as the perfect compensation for those whom the market inflicted losses last year. The price of silver appears set for a correction, which suggests the overbuying activity that took place in June could witness several cash outs in the coming weeks. But the overall direction of commodity prices suggests that this could just be a breather before another rally kicks off.

Gold Price And The Interest Rate Disconnection

We are entering a new phase in gold price action where expectations of Fed interest-rate policy becomes less important & other gold price drivers come to the fore. I believe the Fed will have little room to raise interest rates by anything more than a token increase. What’s more likely, the US & global economic news will continue to disappoint & this could be enough to support a rising gold price.

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Surging Silver Demand Ensures Higher Prices for Bullion & Mining Shares

In 2015, the global silver deficit — more silver demand than mine supply — was about 130 million ounces, made up by selling stockpiles & inventory. According to Société Générale, silver supply in 2016 is likely to decrease another 9%. As the magnitude of the problem sinks in, I expect that more of the big-money players will rush into silver. And it’ll make for a pricing tsunami.

Price of Silver Set to Skyrocket as it Returns to its Historic Role

In addition to holding up well in the face of bearish factors, the price of silver is set to get a boost from several bullish factors that have not yet been fully priced in by the markets. Despite the recent strong dollar and tough talk from the Fed, the U.S. economy cannot afford a strong dollar. The dollar will again naturally weaken and the dollar price of silver will get a boost.

Why And How The US Fed Will Drive Gold Higher

After raising rates in Dec, the US Fed back-flipped on its aggressive interest rate policy earlier in the year. The US stock market nosedived by about 10% and Chinese debt issues worried investors. Gold & gold stocks went through the roof! Despite the stock market recently hitting all-time highs, the Fed kept delaying increasing rates. This ‘wait and see’ policy is causing a lot of uncertainty.

30 Years of Data Says Gold Prices Will Rise If the Fed Hikes Rates

Fed rate hikes have, on average, seen much stronger gold gains than a cut, and more frequently, too. Seen against the last 30 years of data, gold is anticipating a major shock from Wednesday’s announcement. If the bond and futures markets prove right instead, and the Fed delays again, the turnaround in gold bullion could be swift.

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