Commodity Trade Mantra

Posts Tagged ‘Gold Traders’

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.

Traders to Stay Bullish on Gold - Inflation to Accelerate Faster than Fed will Hike Rates

Inflation is going to accelerate faster than the Fed is going to hike rates; that’s good for real assets. On top of it, we are looking for weak dollar on broad basis; that combination has a good tendency to boost gold prices. There’s a lot of uncertainty here. As for the Fed, in the current environment, they may normalize rates but it’s going to be slow moving.

Optimistic Or Pessimistic - Bullish Case for Gold is Clear to All

Throughout 2017, gold should be supported by even deeper negative real rates, which could fall to their lowest level in two years as inflation outpaces nominal interest rate increases. Gold has tended to rise when real rates (what you get when you subtract inflation from the federal funds rate) fell into negative territory. Being optimistic helps you to see the opportunities that others might not.

Gold Investment Demand to rise on Inflation & Pent-up Selling in Red-Hot Stocks & US Dollar

Stock investors owning essentially-zero gold exposure, have vast room to buy again when the wildly-overvalued stock markets inevitably roll over. Gold investment demand was triggered in 2016 by post-Fed-rate-hike stock selling delayed until January for tax reasons. Incentives to hold until January are far greater this year than most, since 2017 may see lower tax rates thanks to Trump.

Time For Gold To Really Shine! Should You Dare Catch The Falling Knife?

The bullish case for gold does not just rest on the direction of the dollar. Gold is also an, “investment in monetary policy failure,” or at least a hedge against it. Technicals & sentiment have again aligned to create a terrific opportunity to take advantage of what could be early stages of a major shift in long-term trend of outperformance by financial assets over real assets.

To Desperately Exit Short Positions, Banks Chose a Chinese Holiday to Slam Gold Prices

On October 4, 2016, for no apparent economic reason, the paper gold market was suddenly flooded with fictitious yellow metal. The reason gold prices dropped so dramatically, therefore, is probably as fleeting and capricious as the people behind it. Here are two Major possibilities. However, this is a major opportunity for purchasing real gold at a discounted price.

Gold Buying by China in a Very Aggressive Motion Right Now

China has gone from being the price taker to the price maker. China wants its currency to be as prominent as the euro, yen & the dollar for global trade. As in the SDR, when you go and borrow the only thing they’ll take for collateral is gold, so the Chinese have been on a very aggressive program of buying gold every month, and we’re seeing that in motion.

Here's How The Dollar Breakdown Could Propel Gold Prices To New Highs

The US dollar has not only fuelled the gold rally, it’s also slammed the U.S. Dollar Index back toward early 2015 levels. If the dollar slips below its 2015 lows, it runs the risk of a much bigger drawdown. And that’s exactly what may be seen soon. A weekly close at these levels will leave the Dollar Index with one foot in the grave. Naturally, this is bullish for gold prices.

Is Deutsche Bank’s Gold Manipulation The Main Scam Or Just A Side-Show?

Is this gaming of the London precious metals fix the same thing as or related to the main manipulation of the gold price, which is the practice of central banks “lending” their gold to big commercial banks, which then sell that gold on the open market to depress the price? These seem to be two different frauds and need to be exposed completely.

Gold Is Exceptionally Cheap At The Moment

Gold is exceptionally cheap at the moment because the radical monetary policies practised by the world’s leading central banks have led to a resurgence of confidence in financial assets and the resultant multiyear rally & an egregious mispricing of risk by investors at large. Once investors discover that there is a bite to the “risk” in risk assets, gold could be the big winner.

Gold Market Is Reaching The Extremes

As per the average gold market estimate in a Bloomberg News survey, the price of gold will drop to $984 per ounce before Jan. That would be the lowest since 2009 & a 10% retreat from Tuesday’s close. ANZ sees gold averaging $1,020 in Dec, Citigroup cut its three-month gold target to $1,000. but Morgan Stanley says gold prices could sink to $800 in its worst-case scenario.

China Center Stage In This Week’s Gold Market Review

The managing director for the Far East region at the World Gold Council said that a gold upheaval is unlikely when the U.S. raises interest rates. Instead, higher rates may create adjustments in the gold market. Morgan Stanley sees gold prices under pressure for the rest of the year. – Strengths, weaknesses, opportunities & threats in the gold market.

American Futures Speculators - The Primary Driver Of Gold Is Bullish

Gold’s primary driver in recent years has been the collective positions of American futures speculators. Their hyper-leveraged bets have given them outsized influence on gold prices & today their gold futures bets are very bearish. When this selling reverses into buying, it has the potential to fuel a sharp & major gold rally.

China is Effectively Consuming all of the World’s New Mined Gold Supply

With new global mined gold supply averaging around 258 tonnes per month, and with 255 tonnes of gold withdrawals from the Shanghai Gold Exchange in January, China is effectively consuming all of the world’s new mined supply. In addition, the India Trade Ministry is said to be seeking to cut the gold import tax.

India Imports 462 MT of Silver in January

As a result from the restrictions in gold trade is that many Indians flocked to silver. In January 2014, India’s gross silver import was 461 metric tonnes. Indian net silver import for 2013 broke all records at 6016 metric tonnes. The Indian gross monthly import average in 2013 was 512 metric tonnes.

How Gold Price Is Manipulated During The "London Fix"

We are delighted that none other than Bloomberg has decided to break it down for everyone, as well as summarize all the ways in which just this one facet of gold trading is being manipulated – Anyways, nothing wrong with a little gold manipulation here and there.

Singapore Continues Push To Become Asian and Global Gold Hub

Singapore, which has become one of the world’s most important financial centers in recent years, continues its push towards making itself a global gold hub to rival New York and London – Several gold traders plan to have offices in Singapore as trading bases.

Gold is last man standing as Rupee fuels Inflation

Wisdom of Indian housewives’ belief in Gold as a store of value is being seen after rapid depreciation in the Rupee recently – Now consider this a prelude to what will be seen in other economies soon as Currencies depreciate

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