Commodity Trade Mantra

Posts Tagged ‘Dollar Index’

Gold Prices Bounce from Key Support - Bull Market Intact

Gold could see a better tone this week assuming that the dollar takes a bit of a breather from its upward advance and if U.S. equity markets pause after several weeks of heady gains. Despite on a short-term sell signal, the gold sector remains firmly on a long-term buy signal. Long-term signals can last for months and years and are more suitable for investors holding for long term.

Inflation to Send Silver Prices Soaring - Silver Outlook Going Forward

Silver is one of the best things to have if you expect inflation in the long term; silver prices increase when inflation rises. In fact, if you look from a historical perspective, for every one-percent increase in inflation, silver prices rise by two percent. If inflation is higher in 2017 and inflation expectations continue to increase, don’t be shocked to see silver prices surging very quickly.

Gold Prices In Oversold Territory - US Dollar in Overbought; Need We Say More?

When gold prices broke through $1,200 yesterday, it triggered a mass of automated selling and that has pushed the market into extremely oversold territory. If gold prices can hold $1,170 then I think we could see the market bounce back. Another positive for gold prices is the US dollar, which is in extremely overbought territory and due for a correction.

Run to Gold as the Inflation Beast Rattles Its Cage

Portfolio-destroying inflation is around the corner because of reckless government spending and unsustainable debt, so stock up the bomb shelter and buy gold. The latest data suggests that the inflation beast is stirring from its long slumber, which means that the classic inflation hedge of gold is on the verge of a sustained rally.

What You can Expect from Gold and Silver going ahead

Gold and silver tanked in the aftermath of the US presidential election, as investors grew optimistic about Donald Trump’s plan to lower corporate taxes & boost infrastructure spending. That sent copper prices to their best weekly performance on record. Higher demand for base metals could drag silver prices higher over the long term, later to be followed by a massive rally in gold on high inflation.

Brace for Inflation - The Next Big Trigger for Gold Prices

Based on the 10-year TIPS market, inflation expectations recently hit 1.75%, the highest level since the summer of 2015. To the extent that rates are being driven by changing perceptions of inflation & not real rates, higher interest rates may not be an impediment for gold. Gold is potentially the more leveraged play under a scenario where inflation expectations rise faster than nominal rates.

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.

Will Silver Prices take off like a Rocket while Gold Prices Languish?

Why are junk bonds and equities not dropping commensurately? It’s crystal clear that if rates are truly moving up, then all assets will be repriced lower. So for the moment, the prices of the metals— silver more than gold—are driven by this Narrative.It would be strange to see the price of silver take off like a rocket while the price of gold languishes, moribund.

Outlook for Gold and Silver Prices in a Crucial Central Banks' Influenced Week

There is a very high degree of uncertainty over market developments in the week ahead, but a fresh surge in volatility is guaranteed. The decisions by the Bank of Japan, followed later by Federal Reserve will have a big short-term impact & an important influence on market direction for the remainder of 2016. Gold and silver prices settled lower last week. Here is the outlook for this crucial week.

August Watchout! Stocks Will Slump While Silver Will Soar

Historically, August has been a rough month for stock investors. The fall in the dollar will reflect in the rise of silver. I believe that silver is on the cusp of a rally. The silver bulls have seen a stupendous run from the lows of around $13.73 during the start of the year to the highs of $21.2 in early July 2016. However, I believe that the bull run in silver will continue after a small consolidation.

Gold Sparkles Most when Dark Clouds Loom over the Economy

After disappointing US economic growth data was released, gold jumped 1.2%. Weak data is good for gold because it decreases the chances of a rate hike soon. If US economy continues to struggle, the Fed could delay its next rate hike. If the dollar index breaks below 93, it could be a strong indication that a new downtrend in the dollar has started. And this could give a big boost to gold prices.

Silver and Gold Look Poised to Test Fresh Highs After Short Breather

Silver futures regained their footing to renew a charge to a fresh, nearly two-year settlement high, and gold tipped higher as surging U.S. stocks looked to pause their ascent. There are still numerous reasons for investors to choose gold and silver as a safe haven. The preponderance to ease further, now being pursued by a host of central banks, will likely provide an element of support.

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.

Nothing Can Stop The Runaway Bull Market In Gold - Not Even The Fed

The next Federal Reserve rate hike is on hold… for now. The last time the Fed raised rates was from 2004 to 2006. Rates went from 1% all the way to 5.25%. If gold was truly affected by the Fed raising interest rates, then it would have had a devastating effect on the gold price… right? But in-fact gold prices went up. Gold doesn’t care about the Fed, especially when gold is in a bull market.

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.

Unsustainable Debt will Melt most Paper Assets - Buy Physical Gold and Silver

Inflation since the early 1980’s was forced into the broader markets rather than into energy and commodities. Which means, most Americans have this false sense of WEALTH, when in all reality, they are completely broke. When the markets really CRACK in a big way, investors will flock into gold and silver, just like they are doing today on a lousy jobs report.

Why Investors See Higher Gold Prices In 2016 - Here Are Six Reasons

Precious metals remain the 2016 commodity leaders, with silver posting a huge 25% gain & gold prices showing a 21% rise. The year is off to a good start for gold investors. But, the party may have just begun. A bevy of economic, monetary, currency and technical factors continue to develop in gold’s favor, which argue for the potential for higher gold prices in 2016.

Gold and Silver Can Protect You from the Coming Bank Account Tax

Deutsche Bank thinks central bankers should go directly after people’s savings accounts. In other words, it’s lobbying for a wealth tax—or “bank account tax”—that would be a more radical version of negative rates. A bank account tax would promote more reckless borrowing and spending than we’re seeing already. When people realize it, they’ll pile into gold and silver.

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.

No One Believes in Gold. Here's Why It Will Keep Rising

While gold and miners continue to consolidate, we’re beginning to see new trading setups emerge on the long side. The rise in gold prices won’t be picture-perfect. Expect wild swings and plenty of shakeouts. Comeback moves are never clean or easy. But they are powerful—and they can put a lot of money in your pocket in a very short amount of time.

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