Commodity Trade Mantra

Posts Tagged ‘Fear Trade’

Gold Prices Poised to Leap as Love Trade Overtakes Fear Trade

India has pulled ahead of China. The economic output of India’s top 5 cities is expected to reach the size of 5 middle-income countries today. Mumbai’s massive $245 billion economy, could soon exceed the entire country of Malaysia. This presents a huge opportunity for the Love Trade to expand even more, as rising incomes & economic momentum have been a tailwind for gold demand.

Will Gold Prices Finish 2015 with a Gain?

After its stellar performance last week, gold might do something it hasn’t done since 2012—that is, end the year in positive territory. It’s no mere coincidence that gold’s breakout coincides with the weakening of the U.S. dollar last week. The greenback signaled what’s known as a “death cross,” widely recognized as the start of a bearish trend.

Gold Glimmers as Global Market Fear Grips Investors

When a currency loses value and falls out of favor, gold has tended to benefit as investors seek real assets. Gold prices have then been able to soar, just as we saw in the months following the financial crisis, eventually reaching an all-time high of $1,921 per ounce in September 2011. Gold is again glimmering with safe haven appeal & the Fear Trade, it seems, is in full force.

“Wrestling with Something Else”: Why this Gold Bear Market Is Different

Let’s begin with the gold bear market that began in 2011. What do you believe caused it? Do you think this is cyclical or a secular bear market? I share my thoughts here on how we arrived in the current bear market, what factors might help us get out of it and the role real interest rates play in gold prices.

Love & Fear Trade Buying Will Drive Silver & Gold Higher. . .This Year!

Despite their recent underperformance, David H. Smith, Senior Analyst with The Morgan Report, remains bullish on precious metals, especially silver and palladium, as the “love trade” heats up and the global economy adds more debt to the system. Investors should take advantage of the regular volatility native to silver prices.

What the Federal Reserve and the Fear Trade Do for Gold

Investors buy gold out of fear of war or concern over changes in government policy. One of the strongest drivers of the Fear Trade in gold is real interest rates. Whenever a country has negative-to-low real rates of return, which means the inflationary rate (CPI) is greater than the current interest rate, gold tends to rise in that country’s currency.

The Gold Market’s Big First Quarter Surprise

The first quarter of the year has certainly provided surprises for the gold market, but remember that every coin has two sides. Every downward data point has an upside opportunity. Follow the smart money, stay diversified & remain a curious investor as investing is key to long-term wealth creation.

The Love Trade for Gold is still On

Investors should have gained confidence from Ben Bernanke’s recent testimony to Congress that the Federal Reserve intends on being accommodative […]

Gold Bullion: 4 Fundamental Facts

Some things to remember amid the volatility of the gold price… When volatility prevails in the gold market, I love seeing […]

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