Commodity Trade Mantra

Posts Tagged ‘Gold Bulls’

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 Prices Based on Historically Low Real Interest Rates - A Small Hike Won't Hurt It

Gold prices are up 26% so far in 2016 & heading into the fall the greater risk remains to the upside due to the tremendous amount of money sloshing through the system. The potential Fed rate hike this September will not hurt gold prices because gold prices are a function of historically low real interest rates. Also helping gold, is the dislocation in the currency markets, especially post-Brexit.

Gold Bullion Flows Reverse Back into the West - What does it Mean?

U.S. has become a significant gold importer. Gold is flowing from vaults in London, Switzerland & even Dubai to the U.S. In May, U.S. imported over 50 times the monthly average amount of gold. Investor demand was the largest component of gold demand for Q1 and Q2 – the first time this has ever happened. This means that more U.S. investors are diversifying their assets into gold.

Are Gold and Silver still Trending up or Vulnerable to some Profit-Taking Yet?

Before you rush to buy into gold-backed ETFs, it’s wise to note that there are signs of profit-taking in gold. Gold and silver tend to move together. Investors monitor the gold-to-silver ratio to assess how expensive or cheap silver is, relative to gold, currently seen at around 70 – near the upper end of the range between 45 and 80. This tells us that silver is still cheap compared to gold.

Gold Prices At Strongest Resistance Area - Will It Breakout Or Fail?

Gold price’s historic chart has three distinct phases: a strong uptrend followed by a consolidation and a strong downtrend. The ultimate test is taking place right now: Gold can break out of its downtrend. But will it do so? That is the million dollar question, and it will have huge consequences for metal investors, but also for markets in general.

Investors Return Big Time to Gold Miners Stocks - A Long-Abandoned Sector

Given the extraordinary market events of the first quarter of 2016, it’s an exceedingly important one to understand what’s going on with the gold miners fundamentally. Strong Q1’16 results prove their big gains are fundamentally justified. Investors wanting to multiply their wealth as this young new bull matures should take advantage of any weakness in this volatile sector to deploy capital.

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.

Central Banks are Buying Gold and Hedging Against their Own Policies

It is not surprising that central banks were adding to their gold reserves in 2015, but it is interesting that central banks have been on an unprecedented spree of creating money out of thin air. So while many investors were not enthusiastic about gold, central bankers saw a need. It seems that central bankers who are buying gold are hedging against their own policies.

The Gold-to-Silver Ratio: A Truly Generational Opportunity

Despite my ongoing belief that we are now in a corrective phase for the precious metals, I think that owning silver versus owning gold is a high-probability trade that could be the 2016 Trade of the Year. I am going to put on a trade this week that effectively favors silver over gold and is a high-risk method of shorting the Gold-to-Silver Ratio.

Gold and Silver Ignore Correction Calls - Precious Metals

Gold and silver are in a new bull market. While it is very difficult to buy into a market that has already gained substantially, history argues that the larger risk is staying out of that market especially if it only recently made a major bottom. The epic “forever” bear market of 2011-2015 lingers in the minds of many and that is why it is so difficult to believe the recent strength can continue.

The Gold Bull Market Is Back... But Will It Last?

The gold bull is back. After trending downward for more than four years, gold prices have broken out to the upside with a gain of more than 20% off their December lows. Gold bulls can sometimes disappoint, and sometimes they keep running and running until they go parabolic. Is the path now clear for gold prices to march on toward new all-time highs?

Kiss the Gold Bear Goodbye (But Wear a Helmet). . .

Wasn’t it only six weeks ago that the Sovereign Wealth Funds were dumping the gold and silver miners as if they were Fukushima waste ponds? The COT has once again sounded the alarm for CAUTION as the short position held by Commercials is now 5,431 contracts LARGER than in mid-October of last year just before they took it down $150 per ounce in six weeks.

Who Says Gold Lost Its Appeal As A Safe Haven Asset?

Until the new year, sentiment appeared poor & many gold bulls were finding it hard to stay optimistic. But after the price jump last week, large exchange-traded gold funds saw massive inflows, confirming a shift in investors’ attitude toward the precious metal. Over the long run, holding 2% to 10% of an investor’s portfolio in gold can improve portfolio performance.

Gold And Silver At Make Or Break Level, Dollar Breaks Out Big Time!

Gold is testing right now its August lows. This is a critical price level, gold bulls would like to see this price level hold, otherwise a washout (capitulation-alike) decline could be in the cards. As for silver, it is holding up slightly better. Both gold and silver are trading at a make or break level. Do not underestimate the importance of these price levels.

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.

Radical Underinvestment in Gold Today is Super-Bullish

American investors are going to soon plow tens of billions of dollars back into gold in an attempt to regain some modicum of prudent portfolio diversification. While these capital flows will be small compared to the stock markets, they are massive relative to gold investment demand. All that buying is going to catapult gold prices far higher.

Is The "Smart Money" Ready To Bet On Gold?

In dollar terms, the price of gold continues to leak, offering very little evidence of any impending stability or bounce. What had mostly been a headwind for gold for the past decade or so is no longer the case. While it may not make an immediate impact, the “smart money” Commercial Hedgers are now more aligned with them than at any point since the bull market began in 2001.

Gold Price Declines and the Grave Dancers

We regard the excessive grave dancing & the utter conviction with which gold is declared to be “doomed” as an outstanding contrary indicator. It means that a major trend change has to be very close. This is not to say that gold cannot fall further in the short term – but the long term outlook has greatly improved by the three waves of extreme bearish sentiment we have seen since 2013.

A Hard Look At Gold via 7 Technical Charts

Looking at gold from different angles chart-wise, gold looks like its nearing a make-or-break level. Gold and silver miners are also consolidating near their support level dating back to 2002. Inflation expectations are also nearing a breakout / breakdown point. Soon we will know more about the true state of the global economy.

What Is Really Driving Gold?

Electronic trading should not be underestimated. Its driving markets more than ever before & the gold market is no exception. That is not to say we like it; its simply the way things are nowadays. COMEX helped fuel the gold rally, but it is doubtful whether it was the ‘driver’. The clearest driver has been inflation expectation.

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