Commodity Trade Mantra

Posts Tagged ‘Gold Price’

Evidence on Gold Price Manipulation is very Clear - Time to Buy is NOW

The big western banks have a monopoly on gold prices even if they do not have a monopoly on physical gold. But that could be about to change. Russia and China are not only building up physical reserves and exploring for more, they are building trading systems that allow for price discovery and leveraged trading in gold. Soon, the physical gold market will regain the upper hand as a price maker.

Paper Gold Price is not the Real Price of Gold

The paper gold market sets the gold price – the paper price that the false gold market trades at. That has very little to do with the price of gold which is what the physical market would trade at if there was not a manipulated paper market. But buyers & sellers are not concerned about the real price of gold. Because they have no intention of owning the physical since they don’t understand its function.

Americans Pawn Gold To Go Further Into Debt: US Gold Scrap Market Drying Up

It is quite unfortunate that Americans have pawned off their best asset only to go further into debt. U.S. gold scrap supply in 2016 (58.7 metric tons) is nearly two and a half times less than it was in 2010 (143 metric tons). Americans pawned off a great deal more gold in 2010 when the price was lower at $1,225 compared to $1,267 in 2016. Which means, the U.S. gold scrap supply market is drying up.

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.

Irrefutable Reasons for Gold Price to Rise to Unthinkable Levels

The gold price is primarily a reflection of the change of value of the paper money. If paper money is debased due to money printing or credit extension, the gold price measured in dollars or euro will increase. Thus, gold as a rule doesn’t go up in price but the value of paper money goes down. Here are some factors that will push the gold price to unthinkable levels measured in paper money.

High Uncertainty Makes This Completely Certain: High Gold Prices

Gold prices tend to fare well when there is a lot of uncertainty around. In today’s environment where you have got a lot of uncertainty, taking a bit of money off the table and putting it into something that will protect you, seems to make sense. Gold is a safe haven asset and in times of trouble it does tend to deliver the kind of insurance qualities that people look to it for.

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.

Gold Price Drivers will turn Unequivocally Bullish on This

Once central banks try to arrest a decline in asset prices and a contraction in aggregate economic activity, a great many of the fundamental drivers of the gold price that look neutral or even bearish at the moment will turn unequivocally bullish. Some market participants are busy accumulating physical gold in spite of the fact that the macro-economic fundamentals are not yet bullishly aligned.

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.

As Inflation Expectations rise, Gold looks more Attractive to Investors

It just might be that inflation expectations are suddenly on the rise, as financial markets get a grip on the Trump administration’s economic and trade policies. As inflation expectations rise, the real rate of interest moves lower and lower – making gold look increasingly more attractive. And this, along with technical factors and market psychology, is pushing gold prices higher.

Why is India's Gold Demand, the Best Hope for Gold Prices

The main boost to gold prices in 2017 may well come from India, formerly the world’s top consumer of the precious metal. Indian gold demand was pummeled in 2016, but there are positive signs that India is recovering, with gold imports jumping to 50 tonnes in February, up more than 82 percent from the same month in 2016, according to data provided by GFMS.

Would You Invest in Gold And Silver Bullion or Bitcoin?

From $412, one year ago, to $1290 on Friday, bitcoin has gained over 200%. Compared to the price action in bitcoin, gold seems boring. While this is a virtue for gold to be used as money (and a vice for bitcoin), it does tend to attract those who just want to get into the hottest casino du jure. There’s more than enough irony to go around.

The Reasons For Owning Gold Bullion Are As Strong As Ever

Given its recent surge, is gold still a “buy?” With the Fed in a tricky situation regarding interest rates—and ambiguity likely to continue to surround the political arena—we may be in for a wild ride in 2017. Given the uncertain outlook and improving fundamentals for gold, now is a great time to add the yellow metal to your portfolio.

Inflation, US Dollar, Gold & the Interest Rate Action by the Fed

The evidence of inflation is starting to emerge. When will the markets begin to see that the Fed is not serious about nipping inflation in the bud? We don’t know the answer but any rate increase could be the one that looks too timid and too late compared to the inflation data. As the markets begin to take note, the dollar will weaken and gold will once again behave like an inflation hedge.

Central Banks’ Attitude to Gold Allocation to Undergo a Massive Change

Demand for physical gold, to escape the alternative of counterparty risk on deposits with Eurozone banks, is bound to grow. One suspects that the Eurozone area will be the first to see widespread gold buying by high net worth individuals, trying to protect themselves from a systemic event that has become all but certain, and will even threaten the entire banking system.

Gold Futures Speculators Missed the Boat - What Happens When They Begin Buying?

Distracted by extreme Trumphoria market distortions, futures speculators have totally missed this gold boat. They won’t stay on the sidelines for long though as gold keeps powering higher. They will rush to get properly positioned for more gold upside. All that coming buying will feed on itself and really accelerate gold’s new upleg, catapulting gold prices much higher.

Is Gold still a Buy? - 5 Reasons You Should Increase Allocation to Gold

Gold is up almost 8% since the beginning of the year & the outlook for 2017 is bright. Net bets on higher future prices have almost doubled since January. Assets held by gold ETFs are up 34% from their Dec lows. Given its recent surge, is gold still a “buy?” Here are 5 compelling Reasons. Given the uncertain outlook & improving fundamentals for gold, now is a great time to add gold to your portfolio.

Gold Prices Setting Bullish Chart Pattern - Gold Stocks Set To Soar in 2017

If you look at gold prices from a technical analysis perspective, it’s projecting a bullish outlook. Also from a fundamental perspective; there are bullish developments that shouldn’t go unnoticed. As it stands, odds are in favor of higher gold prices ahead. As the precious metal soars in price, gold stocks could skyrocket and provide leveraged returns.

Gold Investment is now Insurance for Long-Term Protection against Inflation

Inflation just got another jolt, rising as much as 2.5% YoY in Jan. Significant increases in inflation will ultimately increase the price of gold. Investment in gold now is insurance for long-term protection. Major stock indices continued to hit fresh all-time highs & it’s important to temper the exuberance with a little prudence, making gold’s investment case even more attractive.

Is Conventional Wisdom Right about Gold and Deflation?

Conventional wisdom says gold thrives under inflation and wilts under deflation. The case for gold under inflation is easy enough. Gold rises as the dollar falls. It’s the opposite under deflation. But is conventional wisdom right about gold and deflation? Is it time to consider a different metric — not the nominal gold price — but gold’s purchasing power relative to consumer prices?

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