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Posts Tagged ‘Dollar Index’

Gold Price Movements Indicate That Inflation Is Finally Coming

Not only do we believe the price risks for gold are skewed to the upside in 2018, we think gold prices could test five-year highs amid continued geopolitical and political uncertainty and the now rising inflation. The scope for rising inflation, the interest rate-hiking trajectory nearing the end of its cycle, and a stock-market correction could add to higher interest in gold investments.

Troubles are just Beginning for the US Dollar & how it will Affect Gold

Normally, Fed tightening policies should cause an ever-increasing boost to the dollar index. Instead, the dollar is facing a swift plunge. Unless the Federal Reserve acts more aggressively in its interest rate hikes, the dollar’s decline will be brutal due to fiscal tightening by central banks around the world. Once stocks begin to collapse in the wake of Fed hikes, gold will bounce back stronger than ever.

All the Major Factors that come into Play for Gold in 2018

While inflation has remained low for several months, the most recent readings might suggest that it has started to pick up. When geopolitical tensions rise, investors seek refuge in safe-haven assets—including gold. US equity markets have hit higher highs seemingly every other day & if downside potential materializes, gold might be in for a treat. Also the weakening USD would be positive for gold.

Stealth Rally in Gold Prices Enabled by the battered US Dollar

On domestic and international considerations, the outlook for the US dollar is deeply negative, and so is correspondingly positive for the dollar price of gold. For years, control of the gold price has been suppressed in American markets. That is likely to be challenged by a weakening dollar & ultimately wrested from US futures, if only because physical gold markets are now firmly under Chinese control.

A Rally in Commodities will Trigger the much Awaited Spark in Silver

With dynamic rallies already underway in other commodities such as zinc and palladium, the question becomes…Are we in the early stages of a renewed bull market for commodities, in general? What might this mean for silver which, despite its long history as a monetary metal, is now currently perceived primarily as an industrial metal and considered a “commodity”?

Silver Looks Set to React Violently - Anytime Now

Prolonged underperformance by silver is a sign of a bottom. Volume indicators have improved, especially this year, a positive sign. Unlike gold, silver’s COT structure showed further deterioration last week, and readings are now at levels that are construed as bearish. There is plenty of room for improvement, which will come about if the silver reacts back as expected on a continuation of the dollar rally.

Smart Money to soon Buy Gold out of a Combination of Greed & Fear

We advise investors to buy gold and silver out of a combination of greed and fear. But, the fear factor is relatively low for the new generation that is buying gold . And the real thing is — let’s make money here. One of the main drivers behind this positive shift for gold is the rallying stock market since 2010. Smart money sees that & says the stock market rally has to end & it will probably end badly.

Gold and Silver Bounce Up On Short Covering, Is Safe-Haven Demand or Speculation Driving It

Gold and silver prices ended the day higher, on short covering. There were some significant geopolitical events occurring over the weekend. While the world stock markets have so far mostly shrugged them off as nothing major, the gold and silver markets did get some safe-haven buying support. There was more evidence of a turn in silver than gold last Friday. What is driving the bounce-up?

Pay Greater Attention to Gold - Here comes a Perfect Storm for Higher Gold Prices

If the peak gold hypothesis is proven true, then gold prices could likely soon reach record highs. Here’s everything you need to know, and how you can take advantage of this historic event in the gold market. Only one thing can happen when supply/production fall while demand rises: Gold prices go through the roof. And that’s exactly what will happen when ‘peak gold’ finally arrives.

Brace for a Rally in Silver Prices – The Market’s Stepchild will Outperform All

Not only is silver undervalued relative to gold but also to increasingly over valued stocks, bonds & property markets. Since the beginning of 2017, silver prices have disappointed many investors. However, things are starting to look up & industry observers believe it will outperform gold this quarter & into 2018. In-fact, the more the silver prices get suppressed, the more volatile its breakout will be.

Gold Buying Opportunity on Price Weakness in the Golden Week

The main contributor to the pullback in Gold prices is likely the fact that markets in China will be closed this week in observance of Golden Week. Given that the country is the world’s largest gold market, the metal has in the past depreciated leading up to the week-long celebration. I believe this could be a good buying opportunity. The US Dollar Index break out also seems to fade out soon.

The GOLD Investment Thesis rests on the Gross Over-Issuance of DEBT

Every measure of domestic & global debt is significantly worse today than at its financial-crisis peak. Our gold investment thesis rests on the gross over-issuance of paper claims (debt) against comparatively modest levels of productive output (GDP). The US dollar’s extended decline & gold’s breakout signal growing market skepticism that the era of central bank stimulus is coming to a close.

While Gold builds Momentum after Breakout, Silver Indicates End of Bear Market

The long-term outlook for gold couldn’t be better with it looking destined to break out from a giant 4-year long base pattern to enter a bull market that promises to dwarf the last one. Since silver is in the late stages of forming the Right Shoulder of its H&S bottom it is at a good point to accumulate, although this is likely to be the last chance to buy silver anywhere near to its bottom.

Unwise to be Short on Gold or Silver as Dollar & Stock Market Crash Loom Large

Gold is already up by almost 15% so far in 2017, fueled by the falling dollar. A weak dollar, coupled with a technical breakout, should continue to push gold prices higher, possibly toward $1,600. A major international banking crisis is inevitable & likely to occur fairly soon. A stock market crash is likely to push many banks to that point of failure. So it would be very unwise to be short gold or silver now.

Buy the Dips - A Major Gold Bull Market Expected to begin in Earnest

Price and volume action in gold in recent weeks has been very bullish indeed. Gold charts suggest that the dollar is destined for a serious breakdown. Even if the dollar does bounce up a bit, gold would pull back, but not by much, to provide what will be probably turn out to be the last chance to accumulate the sector at favorable prices before the expected major bull market begins in earnest.

Is a US Dollar Rally Imminent or will Gold and Silver Continue Rising?

The past three weeks have seen a sharp increase in Commercial long liquidation coupled with accelerated shorting but the aggregate number of shorts is still well below the level seen at major tops in the summer of 2016 and with gold approaching U.S.$1,400 per ounce. The risk in this assumption that the U.S. Dollar index ($USD) is about to stage a reversal to the upside, forcing the algo’s to sell gold.

Is Apparent Strength in Stock Market Masking Deeper problems below the Surface?

Mounting pessimism comes at a time when US equities are looking healthy, at least on the surface. This apparent strength of the stock market may just be masking deeper problems brewing under the surface. The fact that we had many volatility cycles since 1983, and are now at all-time lows in volatility, indicates that we may be very close to the turning point.

Dollar's Long-term Downtrend will have Positive Impact on Gold Prices

The charts for the dollar index continue to look grim. On the 8-month chart we can see it dropping away beneath a parabolic downtrend that is accelerating to the downside. If this parabolic downtrend continues to force the dollar lower it should have a positive impact on the gold price, although it hasn’t thus far. Further significant weakness in the dollar should of course be bullish for gold and silver.

Bull Market Incubating in the Precious Metals Sector

Should we see the usual seasonal dip in the precious metals sector during this month and possibly into July, it won’t alter the Big Picture set out here, and it should be seized upon as a buying opportunity, although what we are seeing in the US dollar now suggests that the seasonal dip in gold and silver may just not happen this year.

Gold and Silver Prices Steadily Following an Upward Trajectory

Amidst the most, gold and silver bullish fundamental environment imaginable – on the political, economic, social, monetary, and supply/demand fronts – even the Cartel’s best efforts to delay the inevitable re-emergence of the only real money the world has ever known are failing in the historically rigged financial markets. If you have not already purchased, it may already be too late.

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