Commodity Trade Mantra

Posts Tagged ‘US Dollar’

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.

Safe Haven Gold Sentiment Reaches Five Year High

Gold investing sentiment among Western private investors came into 2017 with the strongest end of year reading for five years. Demand for the precious metal – which is generally seen as a safe haven investment in times of economic and market uncertainty – also set a four year record by weight in 2016, which confirmed the upturn in sentiment as prices rose across the year.

Buy Gold - Dump Treasuries: A Strategic Geopolitical Move, not a Day Trade

US Treasuries are being dumped and gold is being acquired by the largest investors in the world. This is being done not as a “day trade” but as a strategic geopolitical move. Those aims include the overthrow of the U.S. dollar as the benchmark global reserve currency. When that happens, collapsing confidence in the dollar will send the dollar price of gold skyrocketing.

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.

Will China & India's Falling Demand Impact Gold Prices? Can Central Bank Gold Demand Help?

The demand for gold has been weak in India & China. The cash crunch in India contributed to the falling demand. In an attempt to constrain the outflows of the Chinese yuan, China has curbed the import of gold. US federal debt is growing at a fast rate. When major central banks increase debt as a percentage of GDP, their gold holdings often rise – a positive for demand & gold prices.

Gold Price Outlook Hostage to Uncertain Trump & India

Things didn’t quite pan out the way gold bulls would have hoped, and now they face a new year where the price of the precious metal is likely to be hostage to developments that are inherently unpredictable. The two main risks for the gold outlook for 2017 are what actually happens in the presidency of Donald Trump & how the demonetization of India plays out.

SILVER - Ridiculously Underpriced, but Most Rewarding Investment Vehicle

A reminder of the factors that lead us to thinking about silver as a safe haven investment to begin with; as a protection against inflation, or an opportunity to make money & ‘profit’ over the short, intermediate, or long term. From whatever angle, just below a surface understanding, lies the recognition that it is nearly impossible to find any other investment vehicle so ridiculously underpriced.

Gold Prices Preparing for 'The Next Big Leap Higher'

Where could gold be heading? Fundamentals and the macro picture strongly indicate that gold is in a long consolidation phase and coiling for the next big leg higher. The fact that the markets are currently fully pricing a Fed hike next week while also expecting a relatively hawkish tone, makes it a very good long entry point. Let’s see if the shiny metal can finally fly.

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.

Gold Investment Amid Fears of Govt. Crackdown & Weakening Prices

Domestic gold prices are expected to remain range bound with a weaker bias in the next quarter because the dollar is strengthening against the Indian rupee. Local gold demand has come down drastically after demonetisation. Gold sales from wholesalers to retail jewellers have come down by around 90%. The situation is expected to remain like this till 31 December.

The Carnage in the Gold Sector Could Be Over

The rally in gold and silver has corrected hard which is not all that unusual for any bull market. The price of gold is approximately $200/oz lower than its June peak of $1375/oz. RSI is down to 20.63 which is the lowest it has been for some time. A reading below the ‘30’ level is considered to be oversold, so we can see that gold is extremely oversold and a bounce from here is not impossible.

Gold Prices Bounce from Key Support - Bull Market Intact

Gold could see a better tone this week assuming that the dollar takes a bit of a breather from its upward advance and if U.S. equity markets pause after several weeks of heady gains. Despite on a short-term sell signal, the gold sector remains firmly on a long-term buy signal. Long-term signals can last for months and years and are more suitable for investors holding for long term.

Gold Prices In Oversold Territory - US Dollar in Overbought; Need We Say More?

When gold prices broke through $1,200 yesterday, it triggered a mass of automated selling and that has pushed the market into extremely oversold territory. If gold prices can hold $1,170 then I think we could see the market bounce back. Another positive for gold prices is the US dollar, which is in extremely overbought territory and due for a correction.

What You can Expect from Gold and Silver going ahead

Gold and silver tanked in the aftermath of the US presidential election, as investors grew optimistic about Donald Trump’s plan to lower corporate taxes & boost infrastructure spending. That sent copper prices to their best weekly performance on record. Higher demand for base metals could drag silver prices higher over the long term, later to be followed by a massive rally in gold on high inflation.

Is Now The Right Time To Short The US Dollar?

The dollar rally has been led in hopes of the Fed tightening rates in December of 2016. The uncertainty over the election is certainly weighing on the dollar. The stock markets are at a critical juncture, as is the dollar and gold. There is some anticipation that the markets have built in a Hillary victory and that a Trump victory is going to roil the markets.

US Dollar & Elections to Kick-up a Massive Storm in the Gold Market

Gold has already unwound from its overbought conditions. We had very crowded positions at the recent high – it’s looking like it’s ticking up again on the back of Friday’s uncertainty and now I suspect that will continue technically until the 1,500 mark. The current bull market in gold stocks will likely run for a few more years & the average gold stock could head many times higher.

Silver Breaks Out: Will Silver Return as the World’s Premier Currency?

Corrective action from July has more than completely unwound the earlier overbought condition & has brought silver all the way back to its steadily rising 200-day moving average, a classic buy spot, where a potential intermediate base has formed. The tight pattern that has developed following the sharp drop early in Oct suggests a “false flag” that will lead to an upside breakout.

US Dollar & Geopolitical Uncertainty will Drive Gold Prices Higher

Potential US dollar weakness & geopolitical uncertainty could drive gold prices higher next year. The response to stagnant growth and higher debt levels could eventually lead to higher inflation, which will ultimately be positive for gold prices. It doesn’t really matter what the specific catalyst will be. Gold surely has the potential to move higher.

Fearful Capital Turns to Gold and Silver - the Ultimate Financial Insurance

One can easily foresee the financial and political turmoil looming large just ahead. And, there is lots of that coming our way. Now is the time to be proactive in case the situation escalates, which seems to be unavoidable. Gold and silver have been acquired for centuries as a form of wealth preservation, as a long-term store of value and as safe-haven assets in such times.

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