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All posts under ‘US Dollar’

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.”

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…

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.

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.

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.

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.

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