Commodity Trade Mantra

Posts Tagged ‘Inflation Rates’

Rate Hikes Help Industrial Metals Rise Fastest - Silver, Copper & Zinc to Benefit Most

There aren’t many constants in the world of investing, and certainly not many things that rise in value like clockwork. In times of rate hikes, industrial metals rise fastest, and in today’s world, the type of metals in highest demand by China are going to rise the most. Silver is one metal that’s poised to move up & Zinc is trading for less than half of what it did in 1980.

While the World Binges on US Dollar, Gold Awaits the Purge

The best thing to do is continue carrying a piece of your assets in Gold and Silver to hedge when (not if) the USD falls. Gold will be easily north of $2,000 soon after the world is done converting its currency risk into USD. Then they will be left holding the bag as our Fed pulls the plug. and then you will be buying dips at $1800 and selling rallies at $2500.

Why One Analyst Believes Gold Prices Could Hit $3,000 an Ounce

We are likely entering a new gold bull market since the previous one concluded in September 2011. Since 1970, we’ve seen five gold bull markets, each one lasting an average 63 months and returning an average 385%, according to the WGC. Dr. Diego Parrilla stated that “a perfect storm for gold is brewing” & predicts gold could rise to $3,000 within the next three years.

Fed "Policy Error" Sparks "Best Fundamentals In Years" For Gold

As US inflation begins to re-emerge & monetary policy around it continues to remain accommodative, the potential for lower real interest rates is increasing. In our view, this could create similar dynamics for the gold market as what occurred in the mid-to-late 1970s. Gold investment appears to be moving towards stronger fundamentals than we have seen over the past few years.

Gold Retreats as US Fed Members Turn Hawkish in Rate Hikes

Gold had been gaining traction earlier last week following a dovish report by Janet Yellen, the US Federal Reserve chairperson. Gold prices retreated following the rise in the US dollar index. With investors offsetting their positions to take profits and a hawkish view by other Fed members, the sentiment for gold seems to be negative.

Gold Never Changes, It's The World Around It That Does

To understand how the price of gold is affected relative to risk assets, we foremost need to understand how risk assets move. When fear is low, investors may embrace “risk assets,” including stocks and junk bonds. When fear comes back to the market, ‘risk assets’ tend to under-perform as investors reduce their exposure & move to a ‘safe haven’ asset – Gold.

Unemployment and A Tale of Two Financial Crises

Statistics on unemployment following each recession are clear. Strong economic recoveries translate directly into rapid reductions of unemployment. US economic growth has been anemic & unemployment has remained at high levels. The pace of recovery slowed to 2.1% in 2010 & has persisted at a slow rate since then.

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