Commodity Trade Mantra

Posts Tagged ‘Gold Investors’

Gold Prices Poised for an Upside Explosion after Paper Gold Bear Raids Failed

Gold seems poised to resume its march to $1,300 after the paper gold bear raids of late June. Fundamentals are stronger than ever for gold prices. A weak dollar is the Fed’s only chance for more inflation. And that means a higher dollar price for gold. Geopolitical risks are piling up from North Korea, to Syria, to the South China Sea. Get ready for an explosion to the upside in gold prices.

Market Forces are Aligning for a Powerful Trend in Gold Prices

Even the institutional money has been duped into shorting gold in bulk option contracts right as the market turns. They’ll soon feel what it’s like to have a herd of elephants run over them! The threat of multiple rate hikes, coupled with low inflation data, was killing the catalysts for gold. That threat has disappeared, so get strapped, as the coming months could be a defining moment for our portfolios.

Will Gold Investors get more Bullish in 2017 or will the Bears Take Control?

Gold prices have climbed by around 8% year to date, close to what they gained for all of last year & could rally further, potentially to as high as $1,500 – A 20% rise from its current level of roughly $1,250. Yesterday, gold futures slipped & broke numerous technical levels, but as it bounces back off support, the question is will the bounce continue? It also seems that investors will not abandon gold.

Fed Rate Hikes hurt Stock Markets, but are Bullish for Gold Prices

Gold futures speculators get so worked up about Fed rate hikes that they sell too much leading into them & in their immediate aftermaths. That spawns selling exhaustion, leaving big room to buy in order to mean revert those extremely-bearish gold futures bets back to more-normal levels. So covering excessive gold futures shorts & new longs buying catapults gold prices higher in the wake of rate hikes.

Here's what will Boost or Smash Gold Prices in a Major Way

Since 2016 began, physical gold and gold stocks have been pretty solid investments, with physical gold prices gaining about 19% and numerous gold stocks rising by well over 100%. This outperformance is what’s been attracting investors to gold and gold stocks. But can it continue? Here the factors that are most likely to influence the movement of gold prices in the near term.

Historically the Best Assurance for Higher Gold Prices - Debt & Inflation

It is our opinion that the situation today best mirrors 1973, when gold prices gained 134% & gold miners rose 205%, rather than 2008. 1973 was spurred by overwhelming debt and inflation. It is no secret that the world’s governments will continue printing money to fund growth & to service debt. History is favoring a similar situation & gold will be the safe haven from inflation & uncertainty.

Forced Selling Commences: Gold Prices to Soar on Inflation & Other Crises

It will get bloody as forced selling commences & panic selling will ensue before the epic rise begins. Even if interest rate hikes remain a headwind for gold, investors still need to remember that real rates, will remain low for a long time. This time when inflation starts to show up, & believe me, it will, they won’t be able to fight it by raising rates. I don’t think the Fed is going to get ahead of inflation.

What is the Gold Market Really Looking Forward to these Days?

Despite all the uncertainty, rising war tensions, Brexit & the possibility of the French following suit, that would have usually been enough to send the gold price skyward, the gold market seems to shrug off these developments, keeping its eyes focused on the tenor of U.S. monetary policy, particularly the prospect for interest rates.

Can't Afford to Miss Buying Physical Gold Now, Soon Most Won't Really Afford It

The conditions that are favorable for gold, will prove fatal for overvalued stocks that are looking for a trigger to tumble. Remember, diversification is crucial to any investment strategy. As a fraught 2017 unfolds, consider re-balancing your portfolio to accommodate the likely economic, business and market volatility ahead. You can hedge your bets, with physical gold.

Will Gold Trump Politics In 2017? Prospects for Gold Investors in a Trump Economy

What is Trumponomics? And do you think it’ll be bullish or bearish for gold? If Trump thinks China is keeping its currency too cheap & he’s going to do something about it, that means the dollar is going to get cheaper which is usually a tailwind for gold. The dollar price of gold is simply the inverse of the strength of the dollar, So, weak dollar usually means a higher dollar price for gold.

The Events That Could Spark The Next Gold Bull Market

If the events mentioned here come to fruition, it will likely create uncertainty and panic… and that’s good for gold. Therefore, now could be an excellent time to add some bullion to your portfolio. As gold is known as crisis insurance, doing so buys you protection from the fallout of these events. Along with serving as insurance, it could be an excellent investment given today’s low prices.

Investors Bullish on Gold are Back - Buy Before the Mania Sets In

With inflation picking up and the focus on political risk increasing, gold bugs (investors who are bullish on gold) are back. Inflation expectations are now relatively well-established and whilst there are various factors to unravel over the course of 2017, we expect it to remain an important part of our portfolios in what could prove to be a tricky year.

Gold Bugs on Watch for Buy Signal & How Gold Prices React to Fed's Rate Hike

Despite gold being under pressure leading up to the next rate hike, Bank of America still sees prices rallying by around $200 by the end of the year. UBS and Goldman Sachs are also seeing opportunity for higher gold prices. Though sentiment conditions in the gold market have improved markedly & we are a lot closer to a contrarian gold buy signal than we were a couple of weeks ago, we’re not there yet.

Gold Prices to jump $200 by end of 2017: Bank of America

Gold may be under pressure in the run-up to the next Federal Reserve rate hike, but prices are expected to rally by around $200 by the end of the year, according to the corporate and investment banking division of Bank of America. While tighter monetary policy is not bullish, inflation and a range of uncertainties, including European elections and protectionism should support gold prices.

Massive Debt Pain in China Could Be a Blessing for Gold Investors

Although the economy grew by 6.7% in 2016, the debt is causing a host of problems in China. The main reason many Chinese are buying gold is to preserve wealth against the backdrop of massive fiscal stimulus & lax credit conditions. Never has a big economy piled up so much debt so quickly without serious repercussions. It could be wise to take a lesson from Chinese investors & buy physical gold.

Markets Nearing an End to the Glory Days - Better Buy Gold

Despite the ongoing strength in stocks — the resilience of investors’ appetite for risk — gold investors fear that the happy times are about to change. The S&P 500 has another 7% or so to rise, from current levels, until this bull market tops out. But if gold investors have a beat on what’s going on behind the scenes of this stock-market rally … then a stock-market correction is in order soon.

Gold and Silver Are Still Outperforming Stocks So Far in 2017

Gold and silver are still outperforming stocks so far in 2017, and over the last 15 years. Although HSBC expects a near-term correction, “the rally appears intact…and we expect gold to resume the upside after a pause.” Bottom line, long-term gold investors should hold through corrections, or buy more, not sell into a panic.

Gold Prices Rally Against Market Expectations. Will Bullish Run Continue?

Gold prices have started 2017 with a strong performance. This out performance so far has shocked the market as Gold prices had been under performing the market since Trump won the election in November. One question that gold investors are asking now is, will 2017 be as spectacular for the yellow metal as it was in 2016? The short and sweet answer is yes.

Time to Face Reality and Invest in Gold Now

Many of the reasons behind the cheery outlook are unsound and may not come to fruition. For Trump, a loss of faith in the ability to make good on his promises would have an adverse impact on business, consumer confidence & the markets. The reasoning behind gold’s decline rests on a shaky assumptions. If things don’t go as planned, it could create uncertainty & that will benefit gold.

The Fed will not raise rates for the fun of it. The Fed wants to keep inflation under control, but what the organization really wants is negative real rates. That’s where inflation is higher than nominal rates. It does the Fed no good to raise rates unless inflation is going up even faster. Yet that’s exactly when gold does its job of preserving wealth.

The gold market is starting to look extremely oversold, so what does this mean for gold focused investor? For those with a more aggressive investment philosophy, a stomach for buying dips at support levels and a strong conviction that gold is going higher in the long term, the next few weeks may offer up a good buying opportunity.

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