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Posts Tagged ‘Gold Prices’

Troubles are just Beginning for the US Dollar & how it will Affect Gold

Normally, Fed tightening policies should cause an ever-increasing boost to the dollar index. Instead, the dollar is facing a swift plunge. Unless the Federal Reserve acts more aggressively in its interest rate hikes, the dollar’s decline will be brutal due to fiscal tightening by central banks around the world. Once stocks begin to collapse in the wake of Fed hikes, gold will bounce back stronger than ever.

All the Major Factors that come into Play for Gold in 2018

While inflation has remained low for several months, the most recent readings might suggest that it has started to pick up. When geopolitical tensions rise, investors seek refuge in safe-haven assets—including gold. US equity markets have hit higher highs seemingly every other day & if downside potential materializes, gold might be in for a treat. Also the weakening USD would be positive for gold.

The Investment Case for Gold Suddenly got very Attractive

Methodological shifts in government reporting have depressed reported inflation, moving the concept of the CPI away from being a measure of the cost of living needed to maintain a constant standard of living. The underlying inflation gauge (UIG), however, heated up to 3%, its highest reading since August 2006. The investment case for gold suddenly becomes very attractive.

The New Bull Market in Gold will be More Powerful than Ever Before

This new bull market in gold that began on Dec. 17, 2015, (proven by the technical behavior of the prior bear market itself) is the real deal and should last until 2028 or beyond. The combination of fundamental, technical and geopolitical factors is converging in 2018 in a way we have not seen since the late 1970s. The new bull market in gold will be even more powerful than ever seen before.

Stealth Rally in Gold Prices Enabled by the battered US Dollar

On domestic and international considerations, the outlook for the US dollar is deeply negative, and so is correspondingly positive for the dollar price of gold. For years, control of the gold price has been suppressed in American markets. That is likely to be challenged by a weakening dollar & ultimately wrested from US futures, if only because physical gold markets are now firmly under Chinese control.

Gold and Silver Price Predictions for 2018

2017 will be recorded as a transition year for gold; 2018, in my opinion, will go down as the year gold reasserted itself as a primal force in the global financial marketplace. In 2018, cash-flush private investors, absent the past year, will join with professional money in the pursuit of gold both in physical and paper forms. As for silver, it has a history of outperforming gold both ways.

Deeply Discounted Gold Prices, Poised for a Major Bullish Breakout

With the new tax plan fanning fears of inflation and exploding U.S. government debt, the gold bugs have resurfaced. To be sure, gold bugs have several things to latch onto at the moment. Here are the major reasons about why, where and how gold prices could greatly benefit & some more critical reasons to add to your gold holdings.

Expect Silver to Shine Far Better than Gold in 2018

Goldman analysts look for silver to fare better than gold in 2018. They said, “We are finally beginning to see evidence of silver industrial demand picking up with strong global growth, as the impact of both thrifting and substitution appear to fade. Therefore, strong global growth should, in our view, lead silver to outperform gold, as it has in previous expansion phases.”

2017 saw Bitcoin's Astronomical Rise - 2018 will be a Year for Gold and Silver

The new security risks associated with “investing” in cryptocurrency are far greater than most are willing to admit. As flawed as gold is, it has a long history of survival and relevance. That is more than we can say for bitcoin. 2018 will be a year for gold and silver unlike we have seen in some time. Both will move higher in a sustained fashion throughout all of 2018. Here are all the reasons why.

Gold Investment Demand to Surge when Stocks Weaken as Fed & ECB Tighten

2018 is likely to see big gold investment buying much closer to early 2016’s than 2017’s, which will help catapult gold dramatically higher again. The extreme record stock-market rally of 2017 that generated epic euphoria isn’t likely to persist into 2018. As stock markets finally roll over into a long overdue major correction or a new bear market, investment capital will flood back into gold again.

Get Ready For The New Year Rally In Gold And Silver

Many folks have written about how the current selloff in gold and silver was predictable. Whether it was expected due to tax-loss selling, seasonality, CoT-washing or the expected FOMC rate hike, the majority of analysts were expecting price weakness. But if this was so predictable, then why can’t the coming rally to begin the year (seen in the start of each of the last 3 years) be just as certain?

Prolonged Pain in Silver Investment Eliminates even the Modestly Strong Hands

In the breathless mania of the cryptocurrency phenomenon, former “alt” darlings, precious metals, have been pushed to the curb. The is especially so among a legion of anti-fiat currency folks who have fully swung their allegiance from the metals to the cryptos. Silver, in particular, is taking this breakup hard. In fact, Silver has a unique opportunity right now to thrust itself back into relevancy.

Will Bitcoin make things Worse for Gold before they get Better?

While new, smaller cryptocurrencies and “initial coin offerings” continue to gain attention, the market’s more speculative gold mining stocks are taking a beating. Bitcoin is killing gold right now. We have no idea how long crypto-mania will last. But if the excitement surrounding bitcoin continues through the holiday season, we suspect things will get worse for gold before they get better.

Physical Gold - The Only Antidote to the Poison created by Central Bankers

True physical gold demand is the only antidote to the poison created by the Central Bankers & the Bullion Banks. Sadly, 2018 promises another surge in war, debt, negative interest rates & de-dollarization. Will these events finally prompt enough physical demand to break The Banks? Given all the uncertainty that lies ahead for 2018, prices for gold and silver are headed higher not lower.

How Gold Prices Perform During Interest Rate Hikes

The prevailing view is that rate hikes are the natural enemy for gold prices. Analyzing rate cycles & gold prices from 1971, we find gold tends to do better in hiking-cycles than cutting-cycles. The positive performance during hiking-cycles can be explained with the 3 drivers identified in our gold price framework. Given the outlook for these drivers, gold will likely do well even as the Fed keeps raising rates.

Gold Prices Struggle to Breakout from the Tightest Range in a Decade

Gold prices continue to oscillate in a remarkably tight trading range. In fact, with a span of little more than $33 over the last 25 days of trading, we are looking at the most complacent period of trade for the precious metal since 2007. But I expect this precious metal to be shaken out of its dormancy by any number of fundamental cues over the very near future.

Gold Prices Building a Strong Foundation for a Sharp Rebound Leap Ahead

A combination of resilient longs and hesitant shorts has helped gold prices form a decent base and enabled prices to climb above some support levels, improving the overall technical picture. Gold’s performance of late & prospects for seasonal demand to kick in – albeit with unexceptional volumes –should put gold prices in a reasonably healthy position for a rebound leap towards the year-end.

A Weak Dollar = Higher Inflation & Higher Gold Prices - So What does the Fed Want?

A weak dollar is the Fed’s only chance for more inflation. The way to get a weak dollar is to delay rate hikes indefinitely, and that’s what I believe the Fed will do. And a weak dollar means higher gold prices. Central banks are determined to get more inflation and will flip to easing policies if that’s what it takes. Get ready for an explosion to the upside in the dollar price of gold.

A Buy Position in Gold - Heads I Win, Tails I don’t Lose

Markets have now priced in a 100% chance of a Fed rate hike in December. Gold is just waiting for confirmation from the Fed in a few weeks. We have a “Heads I win, tails I don’t lose” situation. If you take a long position in gold today & the Fed raises rates, nothing happens to the price because the rate hike is already priced in. But if the Fed does not raise rates, gold prices will spike suddenly & dramatically.

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?

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