Commodity Trade Mantra

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Gold ETF Investors Skeptical Of Gold Prices Despite Rally

The price of gold is up 6.1% year-to-date, making it one of the outperforming assets in the first three weeks of the year. Unlike last year, it’s not ETF investors that are driving gold prices higher in 2017. In the year-to-date period ending Jan. 18, the SPDR Gold Trust (GLD) & iShares Gold Trust (IAU) the two largest physically backed gold ETFs have had combined net outflows of $440 million.

Pension Funds Need Gold and Silver Before They Implode

While most managers of pension funds shy away from gold, they do so at their own risk & of their pensioners. In today’s uncertain times, few things are as certain as the devaluation of the dollar. It’s time for pension fund managers to break out of their Wall Street groupthink and include a meaningful allocation to physical gold and silver bullion for protection against inflation and financial turmoil.

Indian Gold Industry Hit on Both Fronts: Domestic Sales & Exports

After demonetisation, Indian gold buyers suddenly seem to have all gone into hibernation. The Indian gold industry, recovering with great difficulty from the shock of demonetisation, has been further attacked by a sudden hike in UAE’s gold import duty. UAE, which accounts for a third of India’s gold exports has increased duty on gold imports from 0.36% to 5%.

Declassified CIA Memos Reveal Probes Into Gold Market Manipulation

The CIA recently released a series of declassified 1970s memos relating to the gold market & the newly created SDR. Each of the declassified gold and SDR documents was marked “SECRET”. These memos give new insight how the CIA viewed the gold market, the perceived manipulation of gold & the potential for the SDR to become a gold substitute in the international monetary system.

Trump and Brexit Creating A Rally in Gold and Silver

Traditionally, gold experiences bump at the beginning of the year, but unknowns surrounding the EU’s response to May’s Brexit deal & Trump’s future policy decisions are intensifying haven investing & causing traders to turn to precious metals. Investors should be diversifying their portfolios by buying gold or silver as protection against a falling dollar & political uncertainties that lie ahead.

Price of Silver and Gold in 2017: Why They Could Bounce Higher

Most of those who are bullish about silver prices in 2017 point to silver’s capacity to decouple from the precious metals markets. Excitement about silver’s industrial demand could be the driver for higher prices in the minds of some. With uncertainty about geopolitical actions & surprises likely on multiple fronts, investors should expect gold prices in 2017 to be more volatile than usual.

2017 Creating Conditions for Gold to have it's Best Year in a Generation

Clearly, gold had a poor end to 2016 and fell by over 10% in the last two months of the year. However, it looks set to not only reverse this fall, but to also make high gains during the course of the year. The risks facing the world economy are significant and inflation looks set to rise, both of which create the conditions for gold to have its best year in a generation.

A Correction-Grade Stock-Market Selloff & Investors will Rush Back to Gold Buying

Gold has managed to rally sharply in recent weeks without any capital inflows from American stock investors. They not only weren’t buying GLD shares, they continued to aggressively sell them as evidenced by a couple big GLD-holdings draw days so far in January. The situation implies the investment gold buying hasn’t even started yet & that means big gold buying is still coming.

Here's why 2017 should make Investors Confident about Gold and Silver?

Any sign that the Fed is going to keep interest rates behind the inflation curve is positive for gold and silver. At the moment, a number of top analysts have several interest rates rises depressing the outlook for gold and silver. But this may either not happen, or inflation could prove more rapid than expected & have the same effect. Here are the fundamentals that should make investors feel confident.

Gold Stocks Overcome Dismal Herd Sentiment on Strong Fundamentals

Gold stocks still have easy potential to at least double from here even at low prevailing gold prices. As the overbought stock markets & US dollar inevitably reverse lower this year, gold’s own bull will resume. Higher gold prices will greatly increase the profitability of gold mining & fuel a major new multi-year gold-stock bull. As always the early investors will earn fortunes.

Gold Is Cheap Insurance - No Matter What, Real Interest Rates Will Remain Negative

Either inflation or negative real rates would definitely be a plus for gold prices. If the economy really starts to show strong growth, the Fed will begin a series of rate hikes to put the brakes on inflation, but we anticipate them to be reactive. In either case, real interest rates will remain negative, or at best near zero in both scenarios. This makes a very strong case for holding gold at current prices.

Gold Price Rally Extremely Likely in the Next 100 Days

How high can rates stay ahead of inflation without stifling a recession? I don’t think they can go much higher, and I think that’s the inflection point. I think the next 100 days it’s going to be very important. One thing about Trump, he is taking speed as being a very important factor in how he’s looking at capital markets. So,I think we’ll have a better feel in the first 100 days.

Optimistic Or Pessimistic - Bullish Case for Gold is Clear to All

Throughout 2017, gold should be supported by even deeper negative real rates, which could fall to their lowest level in two years as inflation outpaces nominal interest rate increases. Gold has tended to rise when real rates (what you get when you subtract inflation from the federal funds rate) fell into negative territory. Being optimistic helps you to see the opportunities that others might not.

Gold Prices will soon Reflect the Damage Done (By / To) the US Dollar

As the reality of the ‘new’ Depression sets in, the failure of initial efforts by government will be seen more clearly. They will then step up their efforts. Damage to the US dollar would be reflected in the US dollar price of gold which could easily go from $700 to $7000 in months, maybe weeks. If you think that $7000 gold prices are right around the corner, better plan accordingly.

Time to Face Reality and Invest in Gold Now

Many of the reasons behind the cheery outlook are unsound and may not come to fruition. For Trump, a loss of faith in the ability to make good on his promises would have an adverse impact on business, consumer confidence & the markets. The reasoning behind gold’s decline rests on a shaky assumptions. If things don’t go as planned, it could create uncertainty & that will benefit gold.

Safe Haven Gold Sentiment Reaches Five Year High

Gold investing sentiment among Western private investors came into 2017 with the strongest end of year reading for five years. Demand for the precious metal – which is generally seen as a safe haven investment in times of economic and market uncertainty – also set a four year record by weight in 2016, which confirmed the upturn in sentiment as prices rose across the year.

Gold Bulls to Take Comfort in the Long Term

Expectations of higher interest rates, an appreciating dollar & record-high equity prices held gold prices down. But the longer-term outlook is another story! Contrary to the disappointing experience of 2016, the price of gold is likely to zoom much higher in the years ahead, perhaps doubling or even tripling from recent lows by the end of president-elect Trump’s four-year term.

2016 American Eagle Gold Bullion sales highest since 2011

The US Mint finished off 2016 American Eagle gold bullion coin sales with its slowest month of the year, but that didn’t prevent the year-end total from being the highest since 2011. The final 2016 tally from the Mint reports sales of 37,701,500 ounces of American Eagle silver bullion coins, which is down sharply from record-setting 2015 sales that finished at an even 47,000,000 ounces.

Factors That Practically Guarantee Gold Prices to Rise in 2017

It probably comes as little shock that the leading catalyst for physical gold in 2017 is likely to come down to what the Federal Reserve does with interest rates. The Fed will hold a lot of weight on the movement of gold prices in 2017. Another major catalyst is going to be the Donald Trump presidency. But the final catalyst for gold prices is a real wildcard in 2017: India.

Gold Price Forecast: The Factors Influencing Gold Prices in 2017

Here are three things that are currently taking place that could have significant positive impacts on gold prices. They shouldn’t be ignored by investors, whatsoever. Every day that gold prices remain subdued, the precious metal becomes an even better opportunity. Keeping everything in mind, I am not ruling out $2,000/ounce gold prices in the next few years. It’s possible.

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