Commodity Trade Mantra

Posts Tagged ‘Gold Price’

The Big Question now is - Where does Gold go from Here?

Gold has held its own despite higher interest rates and threats of more. That tells me we’re seeing a flight to quality, meaning people are losing confidence in central banks all over the world. They realize the banks are out of bullets. So gold has been moving up in what I would consider a challenging environment of higher rates. The question now is, where does gold go from here?

Think AGAIN! - Is Bitcoin a Better Store of Value than Gold?

The bitcoin story has grabbed the trading and investing world’s attention like nothing else, hence the huge rise in its price this year. The root cause of the recent price plunge is a long-running conflict over Bitcoin’s failure to fix its most obvious flaws. But if we get a period of market stress then it could be time for the gold bugs to step up a gear as no one knows how bitcoin will react to a market panic.

A Long Dry Spell of Exploration will Pressure Gold Prices Upwards

We’ve had a long dry spell of exploration in the gold mining space. Over the medium and long-term, this could lead to a supply-demand imbalance & ultimately put strong upward pressure on the price of gold. It doesn’t really matter what the gold price will do in the next few years. Production is coming off, and that means the upward pressure on gold prices could be very intense.

Bullion Banks Target the 200-Day Moving Average in Gold a Third Time this Year

Twice previously this year, The Banks have managed to maneuver the gold price down and through the 200-day moving average. On these prior occasions, the speculator selling that followed allowed The Banks to buy back & cover large amounts of their perennial short contracts. And how far might gold prices fall if The Banks can pull this off again? Well, just as in May and July, not too far really.

The Long-Term Demand Picture Remains Supportive of Gold Prices

As more EM economies — including China — are set to grow to these income levels over the next few decades, the underlying long-term demand picture remains supportive of gold prices…While fear can spike or fall relatively quickly, wealth tends to accumulate slowly. This makes wealth an important, but easy to overlook in short-term forecasting, driver of gold.

No Arguments - Every Investor Should Own Physical Gold

The main arguments mainstream economists make against gold are simply nonsense. I believe the primary way every investor should play the rise in gold is to own the physical metal directly. At least 10% of your investment portfolio should be devoted to physical gold — bars, coins and the like. But you can also up the risk to potentially profit from gold too.

Despite High Global Uncertainty, U.S. Citizens Remain Under Invested in Gold

Gold remains extremely under-owned by investors despite having a solid track record as a currency of last resort in times of uncertainty, and despite the current global environment being arguably more uncertain than any point since the second world war. Gold ETFs as a percentage of all ETF assets are now closer to 2%, despite an increasing risk of inflation and therefore negative real rates.

Inflation in 15 Minutes & Solution to Debt Crisis - Raise the Dollar Price of Gold

A massive inflation in 15 minutes: the time it takes to vote on the new policy. Don’t think this is possible? It’s happened in the U.S. twice in the past 80 years. Raising the dollar price of gold is the quickest way to cause inflation. If the markets don’t do it, the government can. It works every time. Gold can be used to work around a debt ceiling crisis if an agreement isn’t reached in the months ahead.

Unwise to be Short on Gold or Silver as Dollar & Stock Market Crash Loom Large

Gold is already up by almost 15% so far in 2017, fueled by the falling dollar. A weak dollar, coupled with a technical breakout, should continue to push gold prices higher, possibly toward $1,600. A major international banking crisis is inevitable & likely to occur fairly soon. A stock market crash is likely to push many banks to that point of failure. So it would be very unwise to be short gold or silver now.

Why Investing in Gold is more Attractive after Prices Break above $1300

Gold is showing decent strength going into the end of summer breaking above strong psychological and technical level of $1300 per ounce which can finally confirm the beginning of long-term bull market. There is no lack of fundamentals supporting the move upwards. Here are the 13 most important drivers of the coming long term precious metals bull cycle.

Is a US Dollar Rally Imminent or will Gold and Silver Continue Rising?

The past three weeks have seen a sharp increase in Commercial long liquidation coupled with accelerated shorting but the aggregate number of shorts is still well below the level seen at major tops in the summer of 2016 and with gold approaching U.S.$1,400 per ounce. The risk in this assumption that the U.S. Dollar index ($USD) is about to stage a reversal to the upside, forcing the algo’s to sell gold.

Gold Prices may be Slow to Rise, but the Direction seems Completely Certain

Gold is challenging the $1300 level for the third time this year. If it breaks upwards out of this consolidation phase convincingly, it could be an important event, signalling a dollar that will continue to weaken. The factors driving the dollar lower are several & disparate. Here is a summary of these trends & explains why the consequence appear certain to drive gold, priced in dollars, much higher.

Fundamental Change - Gold Scrap Slump will Tighten the Gold Market Supply

Normally, when the gold price increases, individuals take advantage by selling old jewelry or scrap into the market. This trend changed in 2017 as global gold scrap supply declined 20% to 563 mt, even as the gold price increased. This suggests that the market is now holding onto its gold rather than sell it into the market… even at higher prices. This is a very POSITIVE indicator for future gold prices.

Momentum in Gold Stocks Building for an Exceptionally Strong Season

Gold stocks exhibit strong seasonality as their price action mirrors that of their primary driver, gold. And since gold stocks have so seriously lagged gold in 2017, their upside potential in this year’s autumn rally is exceptional. That’s already begun in July, proving sentiment is starting to shift away from excessive bearishness. Momentum is building for a far-better-than-average strong season.

Why Cryptocurrencies Can Never Replace Physical Gold

Gold is rare enough to be a true store of value. There’s no danger of it becoming ubiquitous, even if a dozen super-high-grade deposits were discovered tomorrow. If ever the lights go out, due to an electromagnetic pulse, either as an act of war or through a strong solar flare, Bitcoin will vanish instantly. Physical gold, on the other hand, will still be there and ready to use as needed.

Are You Ready for the Storm about to Hit the Gold Market?

September has been the best month for gold over the past 41 years. Coincidentally (or not), September is also the worst month for the S&P 500. As June comes to a close, we’re near the end of the seasonal weakness for gold—soon to enter its historical prime time from August to October. Investors can use these trends to make strategic purchases when the gold market is the weakest.

How, What & Why India needs to do to Improvise it's Gold Market

The gold market in India is in a mess. Smuggling continues big time. Seizure of smuggled-in-gold barely accounts for 3% of volumes each year. Almost 90% of the gold in the markets is adulterated. So, can the situation be remedied? Yes, if there is political will, and the willingness to take a fresh look at gold markets. Here are the things that the government should do. Immediately.

For How Long will Gold and Silver Continue to be "Rigged Markets"?

The discussion surrounding the likelihood of gold and silver being “rigged markets” has been rendered moot by way of the countless flash crashes – More recently, the one in silver on Friday July 7. Had that flash crash occurred in stocks, they would have cancelled the trades. In the silver market, the damage done by the intervention was successful in destroying morale. How long will this continue?

Upside Turn in Stocks & Slam-down in Gold and Silver - Both may be FAKE

The recent inflection from skepticism to optimism could be the first step toward the stock market euphoria that we typically see at the end of bull markets & has been absent so far. People have been convinced that everything is wonderful right now & that stocks are going to go up forever. I don’t buy this. It wouldn’t be a total shock to me if stock markets are down 25% & gold is up 50% by October.

Gold and Silver OR Stocks - Choose Between High Risk or High Reward

While the gold price has a bit more cushion than silver, we can plainly see that both gold and silver are much closer to a bottom than the Dow Jones Index. The HIGH RISK, LOW REWARD easily goes to the Dow Jones and S&P 500 Index. While retail gold and silver sales have fallen significantly, as well as their sentiment, the fundamentals point to a LOW RISK & HIGH REWARD… if we are patient.

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