Commodity Trade Mantra

Posts Tagged ‘US Dollar’

Don't Worry, Gold Prices Will Rise - These 7 Worrisome Signs Will Ensure It

Even if markets continue to rise in the interim, gold prices will rise. Since late 2015, gold has outperformed the S&P 500 by 30%. While the outlook for the US economy is more positive than it was 12 months ago, if we zoom out for a moment, the big picture ain’t so rosy. Gold has historically done well in times of uncertainty & panic & with these 7 worrisome signs, there could be plenty ahead.

Warning Bells to Prepare for the Worst - Preserve Wealth with Gold

U.S. debt levels are higher now than they’ve ever been, according to the Federal Reserve Bank of New York. Loose monetary policy has artificially inflated stock prices despite weak economic growth. Instead of buying low and selling high, you’re buying high and crossing your fingers. Stocks appear to be overvalued right now, in turn boosting the safe-haven investment case for gold.

Historically the Best Assurance for Higher Gold Prices - Debt & Inflation

It is our opinion that the situation today best mirrors 1973, when gold prices gained 134% & gold miners rose 205%, rather than 2008. 1973 was spurred by overwhelming debt and inflation. It is no secret that the world’s governments will continue printing money to fund growth & to service debt. History is favoring a similar situation & gold will be the safe haven from inflation & uncertainty.

A Massive Rally in Silver Prices is More Than Likely - The Opportunity of a Lifetime

Silver prices moved from $4 in 2001 to over $49 in 2011, a whopping 1220% growth. But in the last bull market in silver, the dumb money waited till silver prices had already climbed to $45 before they finally convinced themselves to enter the market, just as the smart ones were getting ready to sell. If you were one of those who waited, hopefully you learned your lesson. Here is your second chance.

What's Affecting the Price of Gold and Silver than the Obvious

The world of pricing gold and silver is a fiction, for their pricing are solely determined by those in charge of the globalist asylum. With the war on cash now underway, would you rather own gold and silver, soon to disappear worthless fiat, or imaginary digits that bankers can make disappear if they do not like your political attitude? The globalists are trying to set a trap for gold and silver holders.

Gold Prices Can Test $2,000 in 18 months on Weak Dollar & Geo-political Tensions

Part of the bullish case for gold prices is an emerging distrust towards U.S. geopolitical behavior & accelerating physical gold purchasing in the rest of the world. While some may be discussing the dollar or equities’ impact on gold prices, the driving factor behind the metal’s price will become “the loss in trust of leadership and governments and financial markets.

Rising Gold Prices & Gold Demand in India - A Major Cause for Optimism

India’s citizens are reportedly turning to gold as a safe haven amid doubts about paper money. It’s actually unusual to see India’s demand growing when gold prices are going up. The fact that prices and demand are rising in tandem could signal an important and positive shift in fundamentals — watch for April import figures in a few weeks to see if the trend continues.

Analysis - The Macroeconomic Drivers of the Gold Price

There are essentially two types of gold price drivers worth discussing: measurable ones and those that cannot be measured. Most of the “measurable” macroeconomic fundamentals that are considered important drivers of the gold price are either mixed/neutral or bearish at the moment. However, there are good reasons to believe that several of them will turn gold-bullish.

US Dollar Headed Significantly Lower with Lower Highs & Lower Lows

Lower highs and lower lows mean one thing — a downtrend. That’s what the US dollar is in now. This downtrend is happening despite anticipated rate hikes. So maybe ask yourself, what if the Fed doesn’t hike rates? What will the US dollar do then? We’ve had some good news on consumer confidence and manufacturing. But that’s the icing on a pretty disappointing economic cake.

Negative Real Rates to Drive Gold Prices Higher Despite Fed Hikes

With arguably the two biggest drivers of the gold price trending in the yellow metal’s favor, gold prices are likely to go higher. Although the dollar could rise if Washington implements some structural reform, real rates aren’t headed higher anytime soon based on the Fed’s actions. If past is prologue, as inflation rises over the coming months, gold will do very well.

Secure Wealth with Gold as Brexit moves from a Concept to a Reality

The Brexit process may now be irreversible, but the actual terms of the withdrawal & of any trade agreements that follow are not yet known. They will determine the impact on stocks in the U.K. & elsewhere. There is one market that could benefit as negotiations get underway & that is gold. The focus will also turn from Brexit to a potential Frexit with upcoming French elections in April.

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.

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