Commodity Trade Mantra

Posts Tagged ‘US Dollar’

How Do a Nation’s Gold Reserves Affect its Economy?

Gold reserves is a wide topic and there are many subjects to be discussed. For instance, there must be connection among gold trade, gold reserves and gold prices. What are the effects of gold prices on governments reserved gold? and the most important question, what will be the impact after the end of raw gold? In general, I would like to sum up the main ideas of that topic.

Stronger Demand & Weaker US Dollar To Push Gold Prices Higher

The peaking of US real yields and the downward pressure building on the US dollar are positives for gold prices. Meanwhile, we expect global jewellery demand & investor demand to pick up in line with the overall improvement in the global economy and in gold demand centres in particular. It would be the first time in five years that demand will be higher than supply.

Rate Hike Priced-in, Gold Prices to Rise as Fed Clings to Status Quo Later

One of the most important factors that will continue to impact post-election investor behavior will be the Fed’s rate hike trajectory in 2017. While the March rate hike has most likely been priced into the current weak gold prices, further rate hikes, to a large extent, depend on US economic data and the Trump administration’s policies. Gold prices will rise on the Fed’s clinging to the Status Quo.

War on Gold and Silver Continues - Insanity Still Rules

It is the never-ending kaleidoscope of insanity by world leaders, that those who have been buying and holding gold and silver continue to question when will sanity return[?], for when it does, both gold and silver prices will likely reach levels never seen before. We have never wavered in our conviction that one day, the ownership of physical gold and silver will be a God-send to individual holders.

Gold Prices Pullback, But Gold Bulls Have Nothing to Worry About

Gold prices have fallen from a $1,260 peak to just under $1,200 as rate-hike expectations have grown. Despite this, we think that gold prices have been relatively resilient as the dollar failed to rally substantially as a result of the behaviour in US real yields. In the short term, those who are long gold might not have to suffer too much more downside.

Why Digital Safe Havens won’t ever Kill the real ones - Gold and Silver

Gold and silver are real & tangible assets, similar to currencies but unlike stocks & government bonds. Gold and silver are also durable with an effectively infinite longevity & thus completely different to any other assets & this gives them a prominent position as safe havens, and they are precisely what the likes of Bitcoin lack. Can the intangible assets really replace the tangible?

The Correlation between US Dollar & Commodities is now Broken

Commodity prices have traded in a strong inverse relationship with the US dollar over the past decade or so, but this relationship broke down in late 2016 and the breakdown looks here to stay. Commodities generated strong returns in the Q4 of 2016 with the Goldman Sachs Commodity Index moving 9% higher despite a stronger dollar which gained about 7% against major currencies.

Gold and Silver - Honest, Sound Money Rising at the State Level

Supporters of sound money are working hard to reestablish gold and silver as money according to state law and to make sure it is treated as such in the tax code. Trading one form of money for another should not trigger any tax. There is no sales tax when customers swap their precious metals for dollars, so switching dollars to bullion should also be tax exempt.

Inflation, US Dollar, Gold & the Interest Rate Action by the Fed

The evidence of inflation is starting to emerge. When will the markets begin to see that the Fed is not serious about nipping inflation in the bud? We don’t know the answer but any rate increase could be the one that looks too timid and too late compared to the inflation data. As the markets begin to take note, the dollar will weaken and gold will once again behave like an inflation hedge.

Massive Debt Pain in China Could Be a Blessing for Gold Investors

Although the economy grew by 6.7% in 2016, the debt is causing a host of problems in China. The main reason many Chinese are buying gold is to preserve wealth against the backdrop of massive fiscal stimulus & lax credit conditions. Never has a big economy piled up so much debt so quickly without serious repercussions. It could be wise to take a lesson from Chinese investors & buy physical gold.

Factors Converging Together to Drive Gold Prices 15% Higher

Although markets are expecting the Federal Reserve to raise interest rates three times this year, starting as early as March, there are three factors converging together to create the perfect storm for the gold market. The key for gold prices will be the fact that real rates are expected to remain low because of higher inflation.

Did Gold Prices Really Fall Over Trump’s Speech?

If Trump pursues a weak dollar policy, it has clear inflationary consequences, which is good for gold prices & euro. If Trump pursues a strong dollar policy, it will almost certainly lead to a Chinese maxi-devaluation & to an emerging-market dollar-denominated debt crisis. That could be a short-run head wind for gold prices, but as crisis conditions take hold, gold will benefit from a flight to safety.

Replace US Dollar With Gold As Global Currency & Make America Great Again: Trump

Mr. President: “No such thing as a global currency?” The dollar is the global currency. Want prosperity? Heed Chairman Greenspan and do not just view but restore “gold as the primary global currency.” President Trump: replace the dollar with gold as the global currency to make America great again. We have the gold.

Are Rate Hike Cycles Good for the US Dollar & Bad for Gold?

Gold does not necessarily rise and fall with interest rates, jewelry demand in India, or any other widely believed nonsense. Rather, gold has moved in conjunction with perceptions as to whether or not the Fed and central banks have everything under control. If you believe as I do, that everything is not under control, or if you want some insurance, then take a position in gold.

Fundamental & Technical Views in The Commodity Markets

Let’s take a look at some key commodity components to see what’s going on right now & how it might be helpful. Historically, we tend to see strong moves in commodities with converse movements in the US Dollar. If you have a good scent on where Commodities are headed & that is confirmed with US Dollar moving in opposite directions, you have found a good theme that could trade & ride for a while.

Gold and Silver Markets have Entered a New Phase

Even the most optimistic Trump supporters should be planning for a bumpy ride on the way to reform. The bull run in the S&P 500 has lasted almost 8 years. Do Trump’s plans for economic revitalization mean the run can persist for years longer? For those not supremely confident in Trump’s ability to shepherd the tax cuts & a big infrastructure program through congress, gold and silver is the better bet.

A Gold Standard would've Prevented U.S. from this Extreme Indebtedness

Even Greenspan admits this is the case with debt: “We would never have reached this position of extreme indebtedness were we on the gold standard, because the gold standard is a way of ensuring that fiscal policy never gets out of line.” Certainly, debt loads have taken off since Nixon closed the gold window in 1971, breaking the last link with gold.

What is President Trump's US Dollar Policy?

Let’s take a look at what Trumponomics really means for the direction of the US dollar. If the Trump Administration really wanted a weaker US dollar they would ask for Janet Yellen’s resignation & appoint someone even more dovish than she is. A successful implementation of Trumponomics equates to a stronger US dollar, higher bond yields & rising borrowing costs.

Gold and Silver Are Still Outperforming Stocks So Far in 2017

Gold and silver are still outperforming stocks so far in 2017, and over the last 15 years. Although HSBC expects a near-term correction, “the rally appears intact…and we expect gold to resume the upside after a pause.” Bottom line, long-term gold investors should hold through corrections, or buy more, not sell into a panic.

Bullish Indicators & Constructive Price Action Confirm Bullish Outcome for Silver Prices

The confluence of bullish indicators & constructive price action confirms that a bullish outcome is a real possibility for silver prices. Add the prospects of a weaker US dollar & these factors create the perfect ingredients that send this precious metal soaring. Technical indicators & price patterns seen here on the silver price chart clearly suggest that a rally is likely to ensue.

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