Commodity Trade Mantra

Posts Tagged ‘GLD Gold ETF’

Renewed Buying in Gold Futures & GLD Shares Fuelling Gold's Next Upleg

With gold futures speculators’ collective bets no longer excessively bullish and holding back gold, that paves the way for major investment buying to resume. Meanwhile American stock investors have resumed heavy buying of GLD shares again, fueling this ETF’s big early-quarter holdings build equalling Q1’16’s massive jump that ignited gold’s young new bull.

Gold Holds Massive Gains Despite An Incredible Stock Market Rally

Gold has managed to hold its massive gains despite an incredible stock-market rally, which can really sap gold investment demand. Gold investment demand will explode again as stock markets inevitably roll over and head lower again. Nothing fuels gold investment demand like bear markets in stocks. The stock-market bear and gold’s new bull have only barely begun.

Extremely Battered Prices make Silver a Coiled Spring - Ready to Explode Higher

A delayed silver reaction to major new gold uptrends is readily evident over the past decade. But once gold rallies far enough, silver investors return & as silver’s gains accelerate, they soon catch up with & eventually surpass gold’s own. The battered silver prices (coiled spring) aren’t sustainable, so silver is due for a massive mean reversion higher as investors return.

Massive Gold Investment Buying Overpowers Speculation & A New Bull Market Is Born

The magnitude of Gold investment buying seen so far this year is exceedingly bullish! Nothing like it has been witnessed since early 2009, when hedge funds flooded into gold after 2008’s once-in-a-century stock panic. Since investors have so aggressively taken the gold buying baton from gold futures speculators, the odds are stellar a new bull market in gold has been born!

Shorts Savage Gold Futures After a Hawkish Surprise by the Fed

American gold futures speculators just savaged gold again on their historically-wrong and irrational belief that Fed rate hikes will decimate gold. Last week’s surprisingly-hawkish FOMC statement unleashed furious gold futures selling, battering gold back below its new uptrend’s support line. Futures shorting soon reverses, as those positions must soon be covered.

Gold Seasonals Bottoming, Ahead of the Usual Major Surges

Gold exhibits strong seasonality, created by surges in global gold demand throughout the calendar year. While this has been suppressed in recent years by the Fed-fueled extreme market distortions, that anomaly is only temporary. Right now gold is experiencing its most-important seasonal bottoming.

Gold Investment Remains Deeply Out Of Favor

Between Dec 2012 & GLD’s recent 6.3-year holdings low in Jan 2015, investors dumped so many GLD shares that it was forced to liquidate 648.5t of gold! That’s about 25.9t of gold per month. These epic outflows overwhelmed normal gold investment demand, forcing gold’s price sharply lower.

Is Chinese Gold Demand Really Falling? Probably Not

Media reports that Chinese gold demand may be slipping, but so far this year, although Chinese demand may currently be down a little its holding up overall at historically high levels. Gold movement from West to East already appears to be exceeding newly mined supply, while scrap sources decline.

Have The Precious Metals Bottomed?

After a gut wrenching correction that drove Gold and Silver prices down 38% and 63% respectively from their 2011 highs, the recent price action in Precious Metals has been dramatic

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