Commodity Trade Mantra

Posts Tagged ‘Treasury Yields’

30 Years of Data Says Gold Prices Will Rise If the Fed Hikes Rates

Fed rate hikes have, on average, seen much stronger gold gains than a cut, and more frequently, too. Seen against the last 30 years of data, gold is anticipating a major shock from Wednesday’s announcement. If the bond and futures markets prove right instead, and the Fed delays again, the turnaround in gold bullion could be swift.

Why Silver Prices Could Have Considerably More Upside Than Gold

When we take a step back and analyze the catalysts behind the move higher in precious metal spot prices, it’s silver prices that could have considerably more upside than gold. Today, we’ll lay out the case why physical silver could be on its way to $30 an ounce, which would represent a gain of nearly 60% from where physical silver is today.

The Most Important Reason Why Gold and Silver Will Continue to Rally

Today, though, interest-bearing assets are, in some cases, not even yielding pennies on the dollar. Bank CDs probably aren’t even yielding 1%, and Treasury yields are still bordering their lowest yields in history. What this means is that the opportunity cost of a sub-1% yield for CDs and money market accounts, or a near-record low yield for T-bonds, makes owning gold and silver more attractive.

You Can't Keep Gold Prices Down With Just A Strong Jobs Report

Some holders of gold took advantage of a small window to sell on Friday, worried that the 287,000 new jobs added in the U.S. would send the greenback to new highs against other major currencies. But as traders digested the headline, it became clear that the jobs report wasn’t that strong. What’s astounding is that the S&P 500 rallied 1.3%, the dollar gained 0.7%, yet gold closed up 1.7%.

So Far, So Good - What's Next for Gold and Silver? Brexit Aftermath

Gold outperformed the US dollar & Treasuries as the go-to safe haven asset. Investors rushing around on Friday & looking for somewhere to flee favored gold. World financial markets are highly leveraged & massively interconnected. The collapse of even one bank or hedge fund can have vast implications. Here are some early insights on Brexit as it relates to the gold and silver markets.

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.

Investors Not Believing Economic Data, Still Prefer Gold

I think there is some disbelief in the recent slew of better-than-expected U.S. economic data, which could be supporting gold prices. Lower U.S. Treasury yields are increasing the attractiveness of gold and other precious metals as gold doesn’t pay a coupon or dividend. Investors have started to move back into gold. As a result, every slight weakening in prices is only temporary.

Will They Or Won't They? Five Fed Meeting Scenarios & Market Impact

Even beyond the immediacy of this Fed decision, the high likelihood that the Fed will still hike in 2015 even if it passes on doing so this week is contributing to levels of 3m implied volatility being near the highs of the year. Here are Credit Suisse’s 5 scenarios & possibilities that could emerge from today’s FOMC.

Gold Prices and the Gibson’s Paradox Implications

The flight of speculative capital from falling markets has to go somewhere, particularly if cash balances held in the banks are at a growing risk from systemic default. The Gibson’s Paradox tells us that these are the conditions for commodities to become the safe haven of choice for the highest levels of speculative money ever recorded since fiat currencies dispensed with the gold standard.

Gold Prices and the Fed's Interest Rate Hikes

The sharp early-year surge in gold prices has fizzled in recent weeks Are higher rates really bearish for gold? Gold can’t drift lower forever any more than stock markets can rally forever. So instead of just blindly accepting the belief that Fed’s rate hikes are bearish for gold, why not check the historical record which proves just the opposite?

Gold and Silver Manipulation in the Eyes of the Chinese

The educated Eastern investors are more incredulous of the blatant paper suppression of their “savings” than their uneducated Western counterparts. Which is why, with 100% certainty, they will continue to acquire physical gold hand over fist until the West’s dramatically depleted supply is gone.

follow us

markets snapshot

Market Quotes are powered by India

live commodity prices

Commodities are powered by India

our latest tweets

follow us on facebook