Commodity Trade Mantra

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A Government Shutdown Could Change The Picture For Gold

Near-term catalysts for a push lower in gold prices includes higher US interest rates, among a few others. But, if the US fails to reach a settlement on a government shutdown, gold could take flight and stocks might find gravity. The initial deadline is this Friday, and Goldman estimates only a one in four chance of a government shutdown occurring.

Gold Prices Could Hit $1,500 in 2017 Amid Imbalances & Weak Supply

Gold and silver are off to a good start in 2017. We’ve talked earlier about negative real rates supporting prices, and some other potential market movers that could drive demand for the yellow metal specifically. Here’s Frank Holmes on more in terms of potential catalysts that may drive things for the rest of the year & about the more upside in the precious metals.

Can An OPEC Production Cut Extension Push Oil Prices To $60?

Barring another bout of “geopolitical risk,” it seems only significant changes in oil fundamentals will deliver the boost OPEC needs. If OPEC succeeds in lengthening, or even deepening cuts & pulls Russia on board, there’s a chance that the IEA & Goldman’s prediction of a stabilizing oil market & a closer balance between supply & demand by the late-summer 2017 could come true.

Gold Prices Just 1% Shy of Ripping Higher - All Upside Indicators Intact

We have both of the strongest indicators of rising precious metal prices intact. Silver has already broken out and trades above its 200-day moving average and long-term resistance levels, and gold is about 1% away from cracking its own price wall of $1,300. The coming weeks (or even months) could be exactly what you’ve been preparing for.

Gold Prices Likely to Stay Elevated on Safe Haven Demand

According to the Bloomberg Intelligence team, the Fed could be “one and done” in 2017 when it comes to rate hikes. Gold’s top forecaster for the last quarter, Intesa Sanpaola SpA, says that the metal’s price could hit $1,350 by year end, citing faster inflation and geopolitical tensions. “Gold will likely stay elevated given safe haven demand,” Barnabas Gan, economist at OCBC, said.

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Gold is Good as an Inflation Hedge, but Better as a Crisis Hedge

Whether there is hyperinflation or a banking collapse, Gold has historically been the asset to own in times of turmoil. Given its intrinsic value and safe-haven status, there is no doubt that Gold will remain a wealth preservation tool during financial crises. Crises do not come along often, but when they do, it is better to be safe than sorry. Gold is the perfect crisis insurance.

Gold and Silver at Never-to-be-seen-Again Prices vs Financial Assets

The world is now entering the most dangerous period since the end of WWII. Real assets are at historical low against financial assets. Real assets such as commodities (including gold and silver) are even more oversold. Investors still have a unique opportunity to acquire physical gold and silver at prices which will not be seen for a very, very long time, if ever.

Higher Gold Prices shift Sentiment back to Self-feeding Bullish Mode Again

The faster gold rallies, the more investors & speculators alike will want to buy it. While these lofty Trumphoria-distorted stock markets continue to retard gold investment demand, the big 200dma breakout is starting to overcome that. The nearing golden cross will further cement the shift back to bullish sentiment. This upleg in gold prices is set to accelerate considerably in the coming months!

Long Term Technical Analysis for Silver Prices

The $18.50 level proves itself as a long-term resistance and will not give way for the bull easily. This week, the price of silver might consolidate and move downward breaking two bearish candlestick patterns. The downside target of breakout is $16.80 – $17.10 where traders could look to enter for a long term position.

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