Commodity Trade Mantra

Posts Tagged ‘Eurozone Debt Crisis’

Gold Never Changes, It's The World Around It That Does

To understand how the price of gold is affected relative to risk assets, we foremost need to understand how risk assets move. When fear is low, investors may embrace “risk assets,” including stocks and junk bonds. When fear comes back to the market, ‘risk assets’ tend to under-perform as investors reduce their exposure & move to a ‘safe haven’ asset – Gold.

Bullish Bets On Oil Prices Up But Market Stalemate Remains

Bullish bets on crude oil are increasing after the recent snap-back in prices from retesting the lows earlier in the year. We find ourselves in a highly volatile day-to-day price environment, as oil prices are unwilling to push too much higher given the backdrop of oversupply, but are unwilling to push too much lower given an ongoing narrowing of the imbalance amid strong demand.

The Bank Stress Tests That Could Stress Markets

Portugal’s problems reminded investors that Europe’s bank problems have not been fixed. The belief that the Euro has been saved is lulling investors into taking on too much risk, as they did in 2007. Whatever the outcome of the EU’s stress tests, it’s only a matter of time before the Eurozone debt crisis re-erupts.

Gold To Rise On “Systemic And Geopolitical Risk” As Price Fixing Ends

London’s century-old process for fixing gold prices, tainted by a rigging scandal and attacked by critics as old-fashioned, goes under the spotlight this week in key talks aimed at modernizing the process. The market price of gold, which is driven by investment and jewellery demand, could climb as a result of an overhaul.

Silver Prices: Is a 14% Rise Enough for 1 Month?

Having started with a record large speculative short bet against silver prices, June saw the fastest swing in bullish betting on silver, net of bearish contracts, on record. The so-called spec net long rose 150%…swelling over $2bn by value…and growing faster than any week since at least 1986 as silver prices jumped.

Ukraine Currency Collapses Nearly 70% Against Gold In 4 Months

Year to date, gold in hryvnia has surged by 69% from 9,992/oz to 16,880/oz, or more correctly, Ukraine’s national currency has collapsed by 69% against gold in less than four months. This week alone hryvnia has fallen by 7% against gold. The lucky few who own physical gold are being protected from the currency collapse.

The 9 Key Considerations To Protect Deposits From Bail-Ins

There is an assumption and not a guarantee that in the event of bail-in, only bank deposits of over some arbitrary figures would be vulnerable. It may opt to protect deposits over a lower amount – It is also important that those diversifying deposits do not jump out of the frying pan and into the fire.

30 Year Slide In Dollar May Be New Life For Gold: 2014 Outlook

If the dollar’s 30 year decline, as measured by the DXY Index continues, gold may be the main beneficiary. Smart money who understand it’s importance as a diversification continue to accumulate gold – Despite compelling reasons for gold to rally, it still seems to be stuck in a downtrend.

COMEX Default Risk As Gold Inventories Plummet 36%

COMEX Gold inventories have plunged over 36% year to date, from 11.059 million oz to 7.034 today, creating a market more leveraged than it has been for the last 9 years. A default on delivery of gold bullion bars remains a risk, till gold remains in backwardation.

Crude Oil Declines

Crude Oil remains weak on Escalating Eurozone Debt Crisis & Weakening Fuel Demand – Gets Support on Lower than Expected […]

ECB - Euro Crisis

ECB may adopt fresh anti-contagion, unorthodox measures & initiate large scale government bond buying programme which could prove to be […]

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