Commodity Trade Mantra

Posts Tagged ‘Stronger Dollar’

With US Dollar so Strong, How come Gold Prices are yet so High?

Gold is about to have one of its worst quarters in nearly 35 years, but its price is still significantly higher than it should be right now & there does not seem to be any real reason why. Gold may have dropped by over 17% since its peak in the aftermath of Britain’s vote to leave the EU, but it is still significantly overvalued, and Macquarie can’t work out why.

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.

Risk-On Mania Infected Markets will soon be Gold Silver Friendly

The Trump election has ignited a market mania, to everyone’s surprise. In fact, we think that risks are rising, not falling, but that’s not what the markets think as of now. Actually, in economic terms, nothing real has changed for the better & the relief probably won’t last long. And then we will see what the world really looks like. Guess it will be very gold silver friendly.

Silver Prices Expected to Slide Further - But Won't Stay There for Long

Silver could be setting up for another near-term slip prior to resuming its long-term bullish trend as this week progresses. In the absence of any significant shortcomings in the US data, silver prices should have some substantial downside potential in the coming weeks. The long-term bias remains bullish so don’t expect to see the metal stray far below the 17.849 mark.

Stronger Dollar And OPEC Inaction Force Crude Oil Below $40

Looking at global offshore rigs, even though 40 out of 350 rigs have been taken out of the market in the price rout of the last year, we need to see up to 100 rigs go offline to halt the supply glut. The descent into disarray by OPEC has prompted WTI crude oil to plummet into thirty-dollardom; a strengthening dollar is only serving to strong-arm the crude oil complex lower.

Oil Prices Supported by China's Strategic Reserve Hoarding

Imports into China continue to knock the socks off last year’s levels. Should oil imports keep up their pace for the rest of the month, they will be achieve their highest level since April, and imports overall will be up 14% year-to-date through the first three quarters of the year. Bargain-hunting? You betcha.

A Sept Rate Hike Is Not Even Close: Goldman's 7 Reasons Why Yellen Will Delay... Again

On one hand, every economist, virtual portfolio manager, Yahoo Finance Twitter expert & TV talking head is certain that a September rate hike is inevitable. On the other hand, the bank that runs the NY Fed, Goldman Sachs is doubling down on its call that the Fed will not hike in September. So here is Goldman’s Jan Hatzius with seven reasons why Yellen will delay. Again.

China: QE, Printing of Cheap Money, Currency Devaluation and Gold

To the extent that it weakens its own currency, China exports deflation to the U.S. and can help the dollar’s strength. Lower inflation and a stronger dollar reduce the incentive or rationale for any imminent Fed rate hike. So yes, you can almost say this is China’s silent protest against the widely anticipated September hike.

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