Commodity Trade Mantra

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Gold Prices Building a Strong Foundation for a Sharp Rebound Leap Ahead

A combination of resilient longs and hesitant shorts has helped gold prices form a decent base and enabled prices to climb above some support levels, improving the overall technical picture. Gold’s performance of late & prospects for seasonal demand to kick in – albeit with unexceptional volumes –should put gold prices in a reasonably healthy position for a rebound leap towards the year-end.

A Weak Dollar = Higher Inflation & Higher Gold Prices - So What does the Fed Want?

A weak dollar is the Fed’s only chance for more inflation. The way to get a weak dollar is to delay rate hikes indefinitely, and that’s what I believe the Fed will do. And a weak dollar means higher gold prices. Central banks are determined to get more inflation and will flip to easing policies if that’s what it takes. Get ready for an explosion to the upside in the dollar price of gold.

A Buy Position in Gold - Heads I Win, Tails I don’t Lose

Markets have now priced in a 100% chance of a Fed rate hike in December. Gold is just waiting for confirmation from the Fed in a few weeks. We have a “Heads I win, tails I don’t lose” situation. If you take a long position in gold today & the Fed raises rates, nothing happens to the price because the rate hike is already priced in. But if the Fed does not raise rates, gold prices will spike suddenly & dramatically.

When an Insatiable Appetite for Gold gets Diverted to Silver

India in the past has had a history of being the largest importer of gold, which it has only recently been dethroned from, due to India’s war on gold. Their appetite for gold is insatiable and therefore it was only logical to assume that a large percentage of the funds intended to flow into gold, were going to go to the next best thing – SILVER. This has and continues to prove to be the case.

The Big Question now is - Where does Gold go from Here?

Gold has held its own despite higher interest rates and threats of more. That tells me we’re seeing a flight to quality, meaning people are losing confidence in central banks all over the world. They realize the banks are out of bullets. So gold has been moving up in what I would consider a challenging environment of higher rates. The question now is, where does gold go from here?

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Global Silver Production will take a Big Hit this Year - Silver Bulls to Rejoice

It looks like global silver production will take a big hit this year. We could see world silver mine supply fall by 40-50 million oz in 2017 if the trend continues for the remainder of the year. 58% of world silver production is a by-product of copper, lead and zinc production. As the market & economy continue to disintegrate, global silver supply will fall right at the very same time investment demand surges.

Gold Remains Preferred - Wild Volatility & Internet Dependency Weigh Against Bitcoin

Internet shutdowns and cybersecurity attacks compromise our democratic freedoms. When our democratic freedoms are threatened it means our financial ones are also at risk. So many investors spread the risk & hedge their bets against such events. However it can be rendered pointless if your management of your assets is reliant on internet access. Gold is as relevant here as it always has been.

Think AGAIN! - Is Bitcoin a Better Store of Value than Gold?

The bitcoin story has grabbed the trading and investing world’s attention like nothing else, hence the huge rise in its price this year. The root cause of the recent price plunge is a long-running conflict over Bitcoin’s failure to fix its most obvious flaws. But if we get a period of market stress then it could be time for the gold bugs to step up a gear as no one knows how bitcoin will react to a market panic.

Gold Investment Demand will Boom as Bearish Realities of Bubble-Valued Stock Markets Hit

Like nearly everything else in the global markets, gold prices are heavily dependent on investment capital flows. Mesmerized by the extreme stock-market euphoria, investors feel no need to diversify their portfolios with counter-moving gold. Gold investment demand will return as the hard bearish realities of bubble-valued stock markets & central-bank tightening shatter today’s hyper-complacency.

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