Commodity Trade Mantra

Posts Tagged ‘Gold Prices’

Are Gold ETFs Gearing Up for a Rally on the New-found Optimism?

The inflationary outlook is finally looking up in the developed economies. Political risks in Europe including Brexit worries, French elections and talks of Scotland’s independence vote have brightened the prospects for higher gold prices. So, investors intending to profit out of the new-found optimism in the gold space may consider gold ETFs like SPDR Gold Shares GLD, etc.

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.

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.

Stronger Demand & Weaker US Dollar To Push Gold Prices Higher

The peaking of US real yields and the downward pressure building on the US dollar are positives for gold prices. Meanwhile, we expect global jewellery demand & investor demand to pick up in line with the overall improvement in the global economy and in gold demand centres in particular. It would be the first time in five years that demand will be higher than supply.

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.

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.

Any Global Event could send Gold Prices Soaring, Add a fall in Mine Supply to the Woes

The gold mining industry remains challenged by the legacy of fewer discoveries & most of those discoveries are of lower ore grades. Tight economics, quirky legal & regulatory environments in many countries hamper gold production. Add it all up & you have a recipe for falling production. Geopolitical tensions & uncertainty are rising around the world. Any global event could send gold prices soaring.

Rate Hike Priced-in, Gold Prices to Rise as Fed Clings to Status Quo Later

One of the most important factors that will continue to impact post-election investor behavior will be the Fed’s rate hike trajectory in 2017. While the March rate hike has most likely been priced into the current weak gold prices, further rate hikes, to a large extent, depend on US economic data and the Trump administration’s policies. Gold prices will rise on the Fed’s clinging to the Status Quo.

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.

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.

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.

Gold Prices To Move Higher Even If & When The Fed Hikes Rates

It’s very interesting to see gold prices going up despite a challenging environment of higher rates & a manipulated paper market. That tells me that there’s more to the story, that there’s more going on behind the scenes that’s driving the gold price higher. I’m very impressed with the present gold action & here’s why I expect gold prices to really take off going forward.

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.

Did Gold Prices Really Fall Over Trump’s Speech?

If Trump pursues a weak dollar policy, it has clear inflationary consequences, which is good for gold prices & euro. If Trump pursues a strong dollar policy, it will almost certainly lead to a Chinese maxi-devaluation & to an emerging-market dollar-denominated debt crisis. That could be a short-run head wind for gold prices, but as crisis conditions take hold, gold will benefit from a flight to safety.

Will Silver Prices Continue Outpacing Gold Prices In 2017?

Precious metals are off to the races in the first six weeks of 2017, as returns in both gold and silver are beating the S&P 500. The current technical chart pattern for silver prices is stronger than gold. The silver market is trading above its 50-day & 100-day moving averages, which are bullish signals for trend following traders. Why are silver prices outperforming gold? Here are some solid reasons.

Reasons why Gold Prices are Rising & the Dollar is Falling

Shortly after the election, the dollar index spiked as gold prices began a quick decline; however, recently the trend has reversed. The factors shown here for upward movement in gold prices suggest more people are beginning to feel less optimistic about the future, given the current political climate and rightful mistrust of institutions like the Federal Reserve.

Are Rate Hike Cycles Good for the US Dollar & Bad for Gold?

Gold does not necessarily rise and fall with interest rates, jewelry demand in India, or any other widely believed nonsense. Rather, gold has moved in conjunction with perceptions as to whether or not the Fed and central banks have everything under control. If you believe as I do, that everything is not under control, or if you want some insurance, then take a position in gold.

Silver Prices Hold Regardless of Dollar Strength - Dips will be Well Supported

The fact silver prices have managed to accelerate higher while the dollar has been strengthening is noteworthy. With base metals generally rallying too, it looks as though silver is attracting industrial buying. A show of dollar strength may act as a headwind, so we would not be surprised to see prices consolidate at lower numbers; but we expect dips will be well supported.

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