Commodity Trade Mantra

Posts Tagged ‘Gold Market’

Rising Gold Prices & Gold Demand in India - A Major Cause for Optimism

India’s citizens are reportedly turning to gold as a safe haven amid doubts about paper money. It’s actually unusual to see India’s demand growing when gold prices are going up. The fact that prices and demand are rising in tandem could signal an important and positive shift in fundamentals — watch for April import figures in a few weeks to see if the trend continues.

Analysis - The Macroeconomic Drivers of the Gold Price

There are essentially two types of gold price drivers worth discussing: measurable ones and those that cannot be measured. Most of the “measurable” macroeconomic fundamentals that are considered important drivers of the gold price are either mixed/neutral or bearish at the moment. However, there are good reasons to believe that several of them will turn gold-bullish.

Paper Gold Trading Market Continues To Depress Physical Gold Prices

The total amount of paper gold trading done in 2016 equaled 243,000 metric tons. This is 233 times the amount of paper gold traded for each ounce of physical gold purchased. Also 76 times higher than the 103 million oz of world gold mine supply. What would happen to the physical gold prices if traders purchased physical gold instead of the millions of contracts traded on the exchanges.

The Fake Paper Markets & the Real Gold and Silver

Just like the artificial paper markets in New York and London that are used to keep the price of gold and silver from rising, the western stock markets are prevented from falling by a web synthetic derivative securities and fraudulent financial reporting applications. Never before in history have stock market valuations been more disconnected from the underlying fundamental economic reality.

Falling Mine Supply will Trigger Panicked Gold Buying & Higher Gold Prices

Once the price of physical gold starts to move up on basic supply and demand fundamentals & imbalances in the paper gold market, the stage is set for corresponding increases in paper gold prices. As more & more paper gold holders turn from the paper market to obtain physical gold, which is already in short supply in the physical market, we’ll see the beginning of a price super-spike.

Why is the Gold Market Sanguine about Rising US Interest Rates?

Why is the gold market being sanguine about rising U.S. interest rates? Rising U.S. inflation and a peak in U.S. dollar strength may mean that the traditional impact of a U.S. monetary tightening cycle may be less than usual. What the gold market is currently signalling is that while U.S. interest rate rises are still a bit of a headwind, they may not be enough to offset some compelling tailwinds.

Mega Investors Loading up on Gold - Are They Cornering the Gold Market?

China has become a debt crisis waiting to happen. Central banks in Europe have deployed negative interest rates that rapidly erode value. And in the United States wealth has been borrowed from future economic growth to feed bubbles in stocks and real estate. That’s why billionaires are rapidly rushing into their old standby, gold. It’s the only asset that can be trusted right now.

Gold and Silver Manipulation: The Largest, Most Destructive Financial Crime in History

The gold and silver futures market has been an organized crime scene ever since 1980. The current fake prices are roughly $1,300.00 & $130.00/ oz beneath their 1980 inflation adjusted highs, respectively. This is extraordinary given the radical deterioration of monetary, financial, economic & geopolitical conditions since 1980. Prices should be far above the 1980’s, not far below them.

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 Pullback, But Gold Bulls Have Nothing to Worry About

Gold prices have fallen from a $1,260 peak to just under $1,200 as rate-hike expectations have grown. Despite this, we think that gold prices have been relatively resilient as the dollar failed to rally substantially as a result of the behaviour in US real yields. In the short term, those who are long gold might not have to suffer too much more downside.

High Probability of a Huge Gold Price Rally - Sooner than You Expect

Early March is the traditional seasonal lull in gold, right before the spring rally. But this year, it’s an entirely different ball game. Amid the ‘Trumphoria’ stock market surge we saw a radical shrugging off of gold while everyone was paying attention to fantastically over-valued stock markets. Now that rally has ended, we’re staring down a massive gold-buying spree that should take off in mid-March.

Factors Converging Together to Drive Gold Prices 15% Higher

Although markets are expecting the Federal Reserve to raise interest rates three times this year, starting as early as March, there are three factors converging together to create the perfect storm for the gold market. The key for gold prices will be the fact that real rates are expected to remain low because of higher inflation.

Why Central Banks & IMF Were Forced To Rig The Gold Market

Looking at this new information, I had no idea of the amount of Fed, Central Bank and IMF gold market intervention until I put all the pieces together. While most of the folks in the precious metals community realize that the Fed and Central Banks have sold gold into the market to depress the price, this new evidence puts the gold market it in an entirely DIFFERENT LIGHT.

I Buy Gold as it’s Cheap & Central Bankers are Weakening Paper Currencies

Central bankers have printed more than $12 trillion since 2008. It was never a question of if we’d get inflation. It was a question of when. Now that inflation has finally arrived, the price of gold should rise as inflation picks up. Druckenmiller didn’t say he bought gold because the stock market is about to crash, but because 1) it’s cheap and 2) central bankers are weakening paper currencies.

LME Hands Gold Banks License to Print Money

Since the US government has essentially declared it wants exchanges to be the depositories for risk instead of Banks, the Banks are going to start buying exchanges. The banks are creating a new vehicle to capture lost business, this one is in Gold. And its goal is to get in the middle of every Gold deal being bought in the East.

U.S. Favors Debt over Equity, Speculation over Investment, Buy Gold while You can

While the animal spirits may have taken over the equity markets and have ignored the gold market, we should recall that there is a reason why Keynes called them animal and not human spirits. Americans have ransomed the US economy because their policies have favored debt over equity and speculation over productive investment, placing gold in a more envious position.

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 to Steam Ahead on Uncertainty, Despite a Strong Dollar

Despite the strength of the dollar, gold is on an upward trajectory as investors look for a safe haven in an increasingly uncertain world. We think that the gold market is targeting $1,250/oz to the upside so long as we stay above $1,220/oz support. One of the factors driving investors towards gold – uncertainty over the outcome of the upcoming French presidential elections.

Gold Price Movements Indicate Levels of Fear & Uncertainty in Global Markets

At the top of the list of what the stock market hates is uncertainty, while gold typically rises when there is fear and uncertainty in stock markets. The price of gold (see above chart) has been rising & its volume spiking. Our advice would be to keep an eye on the gold market to measure just how much fear and uncertainty there is in global markets about our new President.

With Gold and Gold Stocks Rallying - Is It Too Late to Buy Now?

People thinking about investing in gold and silver today are asking themselves the same questions I was asking myself in 2006. “Is it too late?” My answer is no. I understand that it’s hard to put money into stocks that have risen sharply in recent months. But that’s got more to do with how oversold they were than what is likely to happen next.

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