Commodity Trade Mantra

Posts Tagged ‘Strong Dollar’

Price of Silver Set to Skyrocket as it Returns to its Historic Role

In addition to holding up well in the face of bearish factors, the price of silver is set to get a boost from several bullish factors that have not yet been fully priced in by the markets. Despite the recent strong dollar and tough talk from the Fed, the U.S. economy cannot afford a strong dollar. The dollar will again naturally weaken and the dollar price of silver will get a boost.

Silver Breakout Confirms that Gold and Silver Prepared to Move a Lot Higher

The price of silver has just surged to a high it hasn’t seen since January of 2015. In the aftermath of Brexit, this as a good sign that the prices of both gold and silver are about to really break out and begin moving up in significant bursts. Now that gold is holding steady above $1,300 an ounce, investors who have been waiting on the sidelines to buy should consider acting soon.

Alarming Evidence of Gold Supply Tightness, Chinese Hoarding

China and Russia are acquiring thousands of tons of gold. The Chinese have a huge pile of U.S. Treasury Securities of about $3.2 trillion. They can’t dump the treasuries, but they are worried about inflation destroying the value of the treasuries. So what the Chinese are doing instead is, they’re acquiring gold as a hedge. Where they lose on paper, they make it up on gold.

The Fed is Data Dependant - Gold Price is Dollar Dependant

Rising gold holdings have been the one bright spot for the gold price that has held steady even in the face of weakness on the gold chart. The big question the market is going to be asking is can the Fed indeed hike rates at a pace that would send the US Dollar higher with all the negative side effects from that. Much depends on what the Forex markets do with the US Dollar.

Physical Gold in Your Portfolio is the Ultimate Insurance

Physical gold might be the best form of insurance you can buy. Since 2011, the strong dollar has been a drag on the U.S. economy, harmed exports & imported deflation from around the world. It’s defeating the Fed’s efforts to create inflation. The US cannot have a strong dollar for much longer, and that ultimately means a higher dollar price of gold – much higher.

We’re Near a Major Turning Point in the Currency Wars

In the currency wars, it looks like a recent quiet period is over and war is entering a new major battle. The US dollar went from an all-time low in August 2011 to a 10-year high in mid-2015. But the strong dollar finally caught up with the US economy, which has been slowing down precipitously. There are critical turning points where a long-term directional trend is set to reverse.

The US Dollar Has Just Been Shanghaied By The G-20

The main meeting of the G-20 finance ministers and central bank governors was conducted with much publicity. A secret side meeting of a core group consisting of the US, Europe, Japan, China & IMF in Shanghai on Feb. 26, resulted in the biggest dollar take-down operation since the Plaza Accord of 1985 & will go down in history as a major turning point in the international monetary system.

A Stock Market Correction Has Only Been Postponed, Not Avoided

Markets are relieved that the Fed won’t hike rates in March. But, the markets are never satisfied. Getting stock market expectations aligned with the intended FOMC policy path will not be pretty. Expect higher volatility and stock market drawdowns in April and May as markets reprice. A further stock market correction has been postponed, but not avoided.

WTI #CrudeOil now -0.5% from +4.5%

Whatever ultimately the case, this has never been about oil prices except that they are the most visible and straddling indication between finance and economy; the money supply attempting a rebalancing in reverse of leverage that once dominated everything but no longer can fix to even slightly stable fashion. It is the representation of the structure behind the seeming cyclical.

Financial Forecast: Six signs that 2016 will be much worse than 2015

Over the course of 2015 we witnessed several events that had, and will have, negative repercussions. The financial systems as a whole, once again, got deeper into debt. For how much longer can central banks & governments continue kicking the can down the road without any real reform? Here are answers to these questions to identify trends for 2016 by looking at six key issues.

Can the US Dollar Face Down the Chinese Yuan?

The decision to include the Chinese yuan in the SDR is a political decision, not an economic one. Including the Chinese yuan is a “seal of approval” by the world’s major financial powers, led by the United States. It means China is a financial superpower and deserves a seat at the table when the international monetary system is reset.

A New Opportunity to Collect Safe Income From Gold and Silver

I’m Not a “Gold Bug,” but I Like the Prospects for Gold and Silver. Today, the dynamics for gold and silver are shifting rapidly. Over the next five years, I believe that we could see prices for gold and silver move higher. I even believe that, both prices could potentially reverse all of their losses from the past several years as investors steadily accumulate gold and silver positions.

3 Possible Paths the Fed Might Take Next Week

It is anticipated the Fed would finally raise interest rates. Powerful voices such as former Treasury Secretary Larry Summers & IMF Chief Christine Lagarde have been warning Fed Chair Janet Yellen that the global economy is too weak to bear interest rate increases. There are three possible outcomes in our “probability cloud” for the Sept. 17 Fed FOMC meeting.

Will the Fed Have to Save Emerging Markets with QE4?

As emerging markets and nations attempting to defend their currency pegs to the USD sell U.S. Treasury bonds (which have been held as foreign exchange reserves), the yields on the Treasuries rise as a matter of supply and demand. As supply increases, sellers must offer higher yields to entice buyers. This dynamic undermines both the emerging markets and the U.S.

Gold’s Price Movement is not a Gold Story. It’s a Dollar Story

If gold went from $1,900 an ounce to $1,100, to me, that’s a 50% increase in the value of a dollar. If gold goes from $1,100 to $1,500, I would think of that as a devaluation of the dollar. What that tells me is the story is really about the dollar. So what’s happening to gold is not unique to just gold. It’s something that is affecting all of the other commodities & currencies.

Lies You Will Hear As The Economic Collapse Progresses

Ever since the derivatives disaster, there has been no end to the absurd & ludicrous propaganda coming out of mainstream financial outlets & as the economic collapse situation becomes worse, the propaganda will only increase. Its a common tactic by the establishment elite to string the public along with false hopes so that they do not prepare while the system crumbles.

Global Markets to Fed: No Rate Hike, Strong Dollar Is Killing Us

There are many reasons for global markets to melt down, but one that doesn’t get enough attention is the strong dollar. The USD has already strengthened by 20%. The damage delivered by the rising dollar has been severe; a move higher from here might prove fatal to emerging markets and faltering U.S. corporate profits.

The Fed Is Bluffing... Interest Rates Won't Rise in 2015

The minutes of the most recent Fed meeting showed Yellen and team still won’t pull the trigger on interest rates hike until certain unspecified conditions are met. Well, guess what… Conditions will never be met. Commodities are plumbing record lows – most notably oil and “Dr. Copper,” widely seen to signal a deteriorating economy worldwide. That’s why Ms. Yellen is reluctant to raise rates.

Interest Rates and the Future of Gold

In my view, the U.S. economy remains anemic, additionally suffering from a strong dollar & proponents of the rosy scenario are likely to be disappointed. A reassessment of economic prospects & reassessment of Fed policy in the months ahead could be just the turn of events that will support a springtime recovery in the price of gold.

A Strong Dollar? Why has the Dollar Rallied?

To answer the question whether or not King Dollar is back to stay, I don’t believe there is ANY chance at all and the current strength will be very transitory. The U.S. is broke on too many levels to count from financially to morally, ethically and everything in between. So why has the dollar rallied?

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