Commodity Trade Mantra

Posts Tagged ‘Inflation’

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 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.

The Real US Economy - A Full-Fledged Credit Crisis Is Inevitable

Americans are filing bankruptcy at the fastest rate in years… A growing number of U.S. businesses are going bust… The value of U.S. auto loans topped $1 trillion for the first time ever. Outstanding credit card debt has also surged to record highs. The value of student loans has doubled since 2009. All this wouldn’t be such a big problem if the economy were doing well… But it’s not.

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.

Investors Shift Back into Gold as Trump’s Honeymoon Period Ends

Following the Nov election, outflows from gold ETFs & other products accelerated. But now, just two weeks into Trump’s term as president, the gold bulls are banging the drum, with several large hedge fund managers taking a contrarian bet on the precious metal. Following Trump’s comment that it was “too strong”, the U.S. dollar declined, helping gold prices rise.

Don't Ignore What Surging Inflation Indicates: Go Buy Some Gold

Changes in headline inflation measures suggest a gentle firming in prices. However, underneath the surface there is evidence that inflation may continue to rise past the steady 2% nirvana that central banks prefer. Finally, should inflation expectations rise faster than nominal rates, gold is likely to continue to merit a place in most portfolios.

Gold Price Movements may not be Exciting in 2017 – But I just can’t be Bearish on Gold

Across the developed world, is civil tension, unrest and division going to bubble over, or is it going to simmer down in the coming years? There is every chance that the narrative of civil discontent, division and unrest continues to fester and worsen in the coming years, even if there are no big, catalytic votes coming up in the US and UK. That’s why I’m not particularly bearish about gold.

Here's why 2017 should make Investors Confident about Gold and Silver?

Any sign that the Fed is going to keep interest rates behind the inflation curve is positive for gold and silver. At the moment, a number of top analysts have several interest rates rises depressing the outlook for gold and silver. But this may either not happen, or inflation could prove more rapid than expected & have the same effect. Here are the fundamentals that should make investors feel confident.

Gold Is Cheap Insurance - No Matter What, Real Interest Rates Will Remain Negative

Either inflation or negative real rates would definitely be a plus for gold prices. If the economy really starts to show strong growth, the Fed will begin a series of rate hikes to put the brakes on inflation, but we anticipate them to be reactive. In either case, real interest rates will remain negative, or at best near zero in both scenarios. This makes a very strong case for holding gold at current prices.

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 Prices will soon Reflect the Damage Done (By / To) the US Dollar

As the reality of the ‘new’ Depression sets in, the failure of initial efforts by government will be seen more clearly. They will then step up their efforts. Damage to the US dollar would be reflected in the US dollar price of gold which could easily go from $700 to $7000 in months, maybe weeks. If you think that $7000 gold prices are right around the corner, better plan accordingly.

Gold Price Outlook 2017: Analysts Call for Price Increase

Over the last five years, the gold price has more or less been stuck in a bear market. Moving into 2017, the gold price is expected to move much higher. One key indicator is the moving average of convergence/divergence, which is also known as MACD, and on a weekly basis the MACD and RSIR are indicating that the next move for gold will be up.

Higher Debt Will Accelerate Central Bank Gold Demand

The U.S. government is currently saddled with $19.9 trillion in public debt. The US dollar accounts for about 64 percent of central banks’ foreign exchange reserves. With the potential for higher U.S. budget deficits and debt risking dollar strength, central banks around the globe could be motivated to increase their gold holdings, says Credit Suisse.

Gold Treads Danger Zone - Yet Why Do Some Feel Optimistic?

The presence of considerable global economic, political, market risks and considering that the longer end of the yield curve and the sky-high USD have already tightened conditions, the Fed is likely to deliver a dovish hike later in December. This could mean the dollar & rates along the curve may slide lower & prompt technical traders to send gold back into $1,200-plus territory.

Global Economy Poised on a Knife-Edge Between Inflation & Deflation

The global economy is poised on a knife-edge between inflation and deflation. The inflationary vector could dominate quickly, based on a combination of Trump deficits & Fed accommodation. Conversely, the deflationary vector could dominate based on fundamental factors such as a strong dollar, deleveraging, demographics & technology combined with premature Fed tightening.

Why Some Major Financial Firms See Gold Prices at $1,440 to $1,550 Soon

A factor in my positive outlook for gold prices is the growing national debt, now almost $20 trillion dollars, has to be dealt with. It is at about 75% of the gross domestic product, a ratio not seen since 1950, after the budget exploded as a result of World War II. If the federal deficit for next year grows substantially, look for 2017 to be a very good year for gold prices.

When the Bond-fire has finally run its course, Gold and Silver will Emerge Victorious

Today’s rising interest rates & trillion-dollar losses in global bond markets are prelude to what is to come,- Rising inflation with higher interest rates ending in the bursting of global government bond bubble & long awaited breakout in gold. The battle between capital & free markets is almost over; & when the bondfire has finally run its course, gold and silver will be victors.

Run to Gold as the Inflation Beast Rattles Its Cage

Portfolio-destroying inflation is around the corner because of reckless government spending and unsustainable debt, so stock up the bomb shelter and buy gold. The latest data suggests that the inflation beast is stirring from its long slumber, which means that the classic inflation hedge of gold is on the verge of a sustained rally.

Choking Inflation is last thing the Fed wants now - Good for Gold

The Fed will not raise rates for the fun of it. The Fed wants to keep inflation under control, but what the organization really wants is negative real rates. That’s where inflation is higher than nominal rates. It does the Fed no good to raise rates unless inflation is going up even faster. Yet that’s exactly when gold does its job of preserving wealth.

follow us

markets snapshot


Market Quotes are powered by Investing.com

live commodity prices


Commodities are powered by Investing.com India

our latest tweets

follow us on facebook