Commodity Trade Mantra

All posts under ‘Forex Trading’

Is Inflation Caused by Rises in Commodity Prices or by a Deliberate Act of Currency Debasement?

If inflation is just a general rise in prices as the popular thinking has it, then why is it regarded as bad news? What kind of damage does it do? To ascertain what inflation is all about we have to establish its definition. Now to establish the definition of inflation we have to establish how this phenomenon emerged. We have to trace it back to its historical origin.

Is Now The Right Time To Short The US Dollar?

The dollar rally has been led in hopes of the Fed tightening rates in December of 2016. The uncertainty over the election is certainly weighing on the dollar. The stock markets are at a critical juncture, as is the dollar and gold. There is some anticipation that the markets have built in a Hillary victory and that a Trump victory is going to roil the markets.

US Dollar & Elections to Kick-up a Massive Storm in the Gold Market

Gold has already unwound from its overbought conditions. We had very crowded positions at the recent high – it’s looking like it’s ticking up again on the back of Friday’s uncertainty and now I suspect that will continue technically until the 1,500 mark. The current bull market in gold stocks will likely run for a few more years & the average gold stock could head many times higher.

Is Gold and Silver Bull Market Intact or will US Dollar Strength Crush it?

Conventional wisdom would tell us with the US$ index nearing a major breakout, gold and silver would be vulnerable to further losses. Ultimately, as long as Gold and silver’s fundamental driver – declining or negative real interest rates remain in place, then the fledgling bull market will remain on track. With inflation poised to rise, real rates are likely to decline further in 2017.

Will the US Dollar Die as "New World Money" Goes Live Today? Should I Buy Gold?

Today, Sept. 30, is when the IMF officially adds the Chinese yuan to its basket of currencies comprising its special drawing right (SDR). It has enormous long-term implications for the dollar. Does that mean the dollar becomes worthless overnight? Of course not. This is a development with long-term implications, and that’s the point — the dollar will die — but with a whimper, not a bang.

If the Fed does What it Wants to, the Result will be the Opposite of What it Wants

The US economy is slowing perceptively. What should the Fed be doing? They might want to cut interest rates. Problem. Another tool in the arsenal – cheapen the US dollar. Again there is a problem. Whether that works & what is a good idea are separate issues. Certainly a rate hike would take the stock market down 20%. It’s going to be just the opposite of what the Fed wants.

Global Oil could be a True Body Blow to the US Dollar

What happens when more parties reject the Brent quote as an accurate daily price quote for oil? President Putin has stated many times that he wants to move away from the US dollar in trade. Global oil buyers would soon fall into line & begin paying that basket price. If the Brent oil quote falls apart in Europe — replaced by Urals blend quote — It would be a true body blow to the US dollar.

Gold And Silver Will Have to Struggle to Rise - Says the Fiat Dollar

It appears that gold and silver prices will continue to be kept low. Our take on the precious metals charts strongly suggests that gold and silver may work higher, over time, but it will be labored and not without intense effort to overcome the unlimited ability of the Federal Reserve [controlled entirely by the elites] to create an infinite supply of debt that poses as “money.”

China’s Monetary Ascension Is Paved with Gold

When the Chinese yuan becomes an SDR currency, that could be the inflection point for a new multi-polar currency regime that sees the US dollar decline in stature. Could gold also begin to emerge as a leading currency in world trade? Over time, it certainly could. But the more immediate implications for gold’s monetary role center on its increasing accumulation by central banks such as China’s.

The US Dollar Strength Takes Its Toll On Oil Prices Again

As we exit summer driving season, and as refinery maintenance ramps up, demand eases, and typically… oil prices come under pressure. The return of oversupply fears are clobbering the crude oil complex lower, with gasoline leading the charge. With Nonfarm Friday on deck, bringing the prospect of a stronger dollar, here are five things to consider in oil markets today.

The SDR Is Designed As A Rescue Operation For The US Dollar

The IMF created the SDR Substitution Account in 1969. T he core idea is that the SDR Substitution Account Central Banks allows to diversify their existing US dollar reserves in a one-time conversion away from the dollar into IMF’s SDR, comprised of the US dollar, European euro, Japanese yen and British pound, in an off-market transaction, so as not to depress the dollar’s exchange rate.

Here Is Why The US Dollar Collapse Is Imminent

The list of reasons why the US dollar could collapse is getting bigger daily. Here are some factors – Reckless monetary policies by the Federal Reserve. U.S. national debt continues to increase. Other currencies like the Chinese yuan are gaining a significant amount of attention on a global level. Central banks are starting to lose trust in the US dollar as well. Read more…

Strength of Gold Against Foreign Currencies Confirms Bull Market Status

If Gold is going up only because of a falling US$, that is a US$ bear market, not a Gold bull market. A Gold bull market is Gold rising against the majority of currencies. Gold’s strength in foreign currencies confirms its global bull market status and provides a hint that more gains for Gold in US$ terms are likely ahead. We view any weakness in the weeks ahead as a buying opportunity.

End of an Era: The Rise and Fall of the Petrodollar System

Similar to the paradigm shift – the transition to the petrodollar system that followed with the collapse of the Bretton Woods system, there is another major shift underway today. We will know its consequences in full, the day oil-producing countries demand gold for their oil, instead of dollars. The Gulf states are seeking measures to reduce their dependence & exposure to the US dollar.

Future Prospects for Fiat Currency Money & it's Purchasing Power

The faith and credit-standing of issuers of paper money, and not the known and suspected inadequacies of commercial finance, is the last rotten pit-prop supporting the system. We can easily see how a new round of monetary expansion designed to save the global banking system from its nemesis will lead, not to a Lehman-style outcome, but to a collapse of paper currencies.

A Rush to Gold and Silver Simply Indicates the Falling Influence of US Dollar

While the DOW and S&P languished in the agony of three crashes from March of 2000 through 2009, gold and silver got no respect from Wall Street or financial media. That’s despite gold doubling in paper money terms 2.8 times from 2001 to 2011. But no market goes up or down forever. After years of massive money printing & price manipulation, the gold and silver bull is back.

Will Fed Kill The Dollar To Save Markets - Or Sacrifice Markets To Save Dollar?

A strong dollar makes exported US military hardware too expensive for foreign purchases & a weak dollar can cause a lack of confidence in the dollar & can cause inflation because the US relies heavily on imports. If an interest rate hike causes the equity markets to crash, demand for US Treasuries will spike, thus furthering the Fed’s objectives of keeping demand high for US Treasury bonds.

Currency Manipulation by the United States Is Alive and Well

Although further currency manipulation is far from ideal, the US is in no place to criticize Japan for it. Historically, the US has been the world’s leading cheerleader for currency manipulation. If the United States government wants to continue dishing out anti-currency manipulation rhetoric, it best explain why it’s had its own hands in the foreign exchange market.

Gold Prices will rise on Weaker Dollar - Thanks to Fed's Monetary Policies

Change happens for a reason. Yellen may not be “missing” the risks of stagflation. More likely, she is heading there on purpose – as terrible as that sounds to say. How will gold react? That’s still not clear. But in our view, the longer term trends involve price inflation and economic stagflation. These will weigh down the dollar and drive gold prices higher against it.

follow us

markets snapshot


Market Quotes are powered by Investing.com India

live commodity prices


Commodities are powered by Investing.com India

our latest tweets

follow us on facebook