Commodity Trade Mantra

Posts Tagged ‘Commodity Index’

Deflation Scares Central Bankers - Can Gold Be Their Biggest Ally?

Every Central Banker dreads deflation. They’re doing everything they can to generate a 2% annual rate of inflation, but can’t get it. Well, the last thing you want to see is the gold price going down. If prices continue to drop, they fall to a point where they start to impact jobs. Drilling rigs & mines shut down. So in-fact, they want gold and silver prices, copper & oil prices to go higher.

60% Gains in 2 Months & Gold Stocks Are Just Getting Started

We’re not ready to call the bottom in mining stocks yet, but gold stocks are the exception. Gold stocks provide leverage to the price of gold. A 10% jump in the price of gold can cause gold stocks to surge 30%…or more. The price of gold has surged 17% this year, making it the top performing asset of 2016. Gold’s big move has triggered a powerful rally in gold stocks.

The End of the Bubble Finance Era

During the expansion phase of central bank enabled bubble finance, optimism reigns and bulls and speculators insist that “this time is different.” Yet the laws of sound finance and market economics never change. It often just takes an extended time for all the excesses to work their way through the system and finally reach the blow-off stage.

Commodities Plunge To New 16 Year Low; Oil Slides On Venezuela Warning

The Bloomberg Commodity Index is set for its worst year since the financial crisis, plunging 23 percent. It’s not just the metals though: crude oil also started the session off on the wrong foot, following this weekend’s comments from Venezuela that oil prices may drop to as low as the mid-$20s a barrel unless OPEC takes action to stabilize the market.

Gold Market Is Reaching The Extremes

As per the average gold market estimate in a Bloomberg News survey, the price of gold will drop to $984 per ounce before Jan. That would be the lowest since 2009 & a 10% retreat from Tuesday’s close. ANZ sees gold averaging $1,020 in Dec, Citigroup cut its three-month gold target to $1,000. but Morgan Stanley says gold prices could sink to $800 in its worst-case scenario.

Gold Prices Actually RISE After Interest Rates are Hiked

Conventional wisdom says that rising rates are bad for gold prices. HSBC’s Global Research team found that gold prices have actually risen the last four times rate hikes began. History shows that gold prices also fall leading into a rate hike and generally rise, though sometimes with a lag, after the first rate hike.

A Bloodbath : Commodities Cheaper than during the 2008 Financial Crisis

A strong US dollar is one big reason commodities are struggling. Gold hit its lowest price in five and a half years. It’s just one of many commodities struggling right now. The price of coffee is down 27% so far this year… sugar and lumber prices are both down 22% this year… and a barrel of crude oil costs half of what it did a year ago.

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