Commodity Trade Mantra

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China's Increasing Presence in Gold Market - An Obsession to Prop up Yuan

No doubt that Chinese officials see gold as an important asset for the future. Is China’s quest to put the yuan on the world stage closely related to this involvement in gold? Will China actually come up with some kind of a gold-backed currency? Actually, China’s fixation on gold is a story of diversification that can lessen the devastation of central planning gone wrong.

The Fed is Data Dependant - Gold Price is Dollar Dependant

Rising gold holdings have been the one bright spot for the gold price that has held steady even in the face of weakness on the gold chart. The big question the market is going to be asking is can the Fed indeed hike rates at a pace that would send the US Dollar higher with all the negative side effects from that. Much depends on what the Forex markets do with the US Dollar.

Foreign Central Banks Dumping US Debt & Buying Gold at Alarming Pace

Central banks around the world sold off a net $17 billion in US Treasury bonds in March. Sales set a record in January, hitting $57 billion. Between December and February, China’s central bank sold off an alarming $236 billion. By selling US debt, central banks can get hard cash to buy up their local currency. But many of them aren’t just purchasing local currency. They are buying gold.

Eurozone in Danger on Falling Purchasing Power of Dollar, Not Rising Commodity Prices

All financial prices in the Eurozone are badly skewed. So far, the price inflation environment has been benign, but this year, things have been changing. Higher levels of debt will never allow the ECB to run interest rates up sufficiently to kill price inflation. More likely, positive rates of only one or two per cent would be enough to destabilise the Eurozone’s financial system.

A Technical Correction in Dollar can put some Pressure on Gold Prices

Given the relatively small amount of deliverable gold in the market at any one time, the gold price has the potential to be extremely volatile with this level of off-market speculation hanging over it. The wider public is slowly waking up to the horrors of negative interest rates & withdrawal of high-denomination bank notes, both which will almost certainly increase demand for physical gold.

There will be a Panic Into Gold after the Panic Out of Paper Currencies

I think there’s going be a panic into gold and out of paper currencies. So this small up-move that we’ve gotten here since the beginning of the year, that’s just a harbinger. I think this time around, we’re looking at $2,000, $3,000 an ounce. I think it’s going be incredible. The question is why? Here’s the reason for a bullish outlook on gold, & how silver could hit $100 /oz.

Here's How The Dollar Breakdown Could Propel Gold Prices To New Highs

The US dollar has not only fuelled the gold rally, it’s also slammed the U.S. Dollar Index back toward early 2015 levels. If the dollar slips below its 2015 lows, it runs the risk of a much bigger drawdown. And that’s exactly what may be seen soon. A weekly close at these levels will leave the Dollar Index with one foot in the grave. Naturally, this is bullish for gold prices.

Gold Jumps, Silver Soars As The U.S. Dollar Slumps

Gold prices jumped to a seven-week high & silver soared to a 15-month peak as the dollar touched an 11-month low. With Japan closed today, and unable for now to do more damage (or damage control), China stepped in with some modest turmoil of its own by strengthening the Yuan fix by the most since 2005, pressuring the US dollar weaker for the 5th day in a row.

Watch How The Petrodollar Di(v)es As US - Saudi Relations Crack

U.S.-Saudi interests are diverging in many ways. Saudi Arabia’s 40-year pact with the United States is on the verge of ending. What happens next will have ramifications for the dollar for decades to come. We could be nearing the end of the petrodollar & I would not want to be holding U.S. Treasuries. With current interest rates I don’t want to hold them anyway.

China Yuan Gold Fix Is Part Of A Planned Shift From The US Dollar

By trading physical gold in renminbi, China is slowly chipping away at the dominance of US dollars. Gold, silver, and petroleum are the three US dollar based commodities that China wants most control of, according to Bocom strategist Hao Hong but “gold in particular is one of the commodities that China is hoarding very hard.”

Gold and Silver Manipulation may lead to Dollar Crash soon

Deutsche Bank revealed that gold and silver markets were fraudulently manipulated to protect the dollar. The geo-political gambit by China against the dollar is now underway in undermining the dollar’s foundation by taking over global gold pricing. Chances are high that within weeks we could see the reserve currency devalue precipitously, or at worst, collapse altogether.

In Search for Money that's Good as Gold - What Better than Gold Itself?

Excess debt exerts strong deflationary pressures, and major central banks are now fighting those pressures with such measures as negative interest rates. If inflation wins, as the Fed wishes it to, the dollar may cheapen dramatically & the gold price will shoot up. Wayward monetary policies bring about a search for money that is good as gold. What better than gold itself?

We’re Near a Major Turning Point in the Currency Wars

In the currency wars, it looks like a recent quiet period is over and war is entering a new major battle. The US dollar went from an all-time low in August 2011 to a 10-year high in mid-2015. But the strong dollar finally caught up with the US economy, which has been slowing down precipitously. There are critical turning points where a long-term directional trend is set to reverse.

The US Dollar Has Just Been Shanghaied By The G-20

The main meeting of the G-20 finance ministers and central bank governors was conducted with much publicity. A secret side meeting of a core group consisting of the US, Europe, Japan, China & IMF in Shanghai on Feb. 26, resulted in the biggest dollar take-down operation since the Plaza Accord of 1985 & will go down in history as a major turning point in the international monetary system.

Inflation Expectations, Fears, are Rising and Markets are Responding

When I ask if inflation is about to make a comeback, what I’m really wondering is if the value of the dollar is about to fall. I prefer these measures not because they are more accurate – although I think they generally are – but because they are more timely. Prices will follow the value of the dollar eventually but the impact on investments is much quicker.

Gold And The US Dollar Are Reaching A Critical Point

The gold x USDX index has been confined to the middle equilibrium since mid-2013. Once again, we are at a possible breakout point. If we are to see a significant move in gold, we need to see a move towards the upper equilibrium. If the US dollar were to remain strong during such a move, this would suggest a gold price approaching $1400. The next eight weeks or so should tell the tale.

The $100 Bill Could Be the Next Victim in the War on Cash

When banks implement negative rates, they literally charge customers to hold their money. You’re not likely to save money in the bank if it’s costing you to do so. Central planners believe this will motivate you to spend, thus stimulating the economy. But in order for this scheme to work, it has to be impossible for you to hide currency. That’s what the war on cash is really all about.

The US Dollar is a Crowded Trade – Why this Matters for Gold

Gold remains not only an important portfolio diversification tool, but also an asset class ripe for a rebound. While gold prices have certainly declined as the USD rises, it might be small comfort to see that gold loses less value than other currencies, it also appears to recover more quickly. Gold behaves like a currency, but one that is not easily manipulated by central bank policy.

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