Gold mining stocks have been trending higher, along with the overall U.S. equity market, of late. The recent support in gold prices allowed the Market Vectors Gold Miners ETF (GDX) a strong close last week, pushing 15 percent off the November 18 low.
Gold mining stocks really get a pass from traders, and it is still early to determine whether the move will last...
The iShares Silver Trust (SLV) has been beaten bad, falling over 13 percent prior to Friday’s rally. On a combination of low inflation and low growth, silver has fallen long out of favor with Wall Street (but remains a small investor’s favorite).
But, there are a couple factors that could signal, at least in the short-term, SLV may see some upside.
First, price...
Dollar-yen bulls may be forced to take pause after central bank decisions, from each respective currency, give traders something to chew on:
The FOMC minutes yesterday were nothing short of redundant. I am beginning to think it is the same speech month-after-month, but financial outlets took whatever they could to spin it as hawkish as possible.
That should...
$1,000 per ounce is near - an existential victory for Wall Street
Historically, gold has been a go-to for times of financial uncertainty, whether deflationary or inflationary. Unfortunately, with the perception that central banks around the world will stimulate until growth shows up (hasn't so far) and a global slowdown won't turn into a global recession, gold...
The Australian dollar is coming off a sizable gain against the greenback, following an employment jump of 58,600. This pushed the unemployment rate down to 5.9 percent from 6.2 percent in September. Analysts are expecting this to hinder further rate cuts near-term, while economist Stephen Koukoulas believes the Reserve Bank of Australia (RBA) may indeed raise...
Junk bonds are typically just that - junk. But, the iShares High Yield Corporate has been one of those crowded trades that just do not die.
After witnessing the immaculate short squeeze from 1,864, the SPX staged an impressive rebound. But as I mentioned earlier today (on my InvestFeed - link below), the SPY is looking weak, and the ADX, which measures trend...
If price closes underneath the combination of support, traders will search out The U.S. dollar’s upward momentum quickly faded, following Wednesday’s FOMC minutes which suggested a December rate hike was “back on the table.”
Traders were likely booking profits after the spike higher in the dollar index, which has caused dollar pair counterparts to advance into...
Should silver price in retail demand or economic sentiment?
Silver prices have rallied hard since the beginning of October, up almost 10.5 percent since the October 2 low. However, traders are now budded up against key technical resistance. Will traders’ sentiment reject silver’s upward momentum, as it has done seven times since 2013, or will demand spark higher...
In " Gold Leaps Higher as Worries Mount ," I briefly pointed out how those very same institutions that championed quantitative easing policies implemented by the Federal Reserve are now coming out to proclaim quantitative easing added no substantial benefit to the real economy .
Gold was pushed lower on the assumption that central banking policy would all pan...
Despite all the hype raised about fed printing 3.5 trillion USD during times of economic stimulus, the real amount of help to economy is much smaller - it is approximately 900 billion USD
The rest of "printed" money (2.6 trillion USD) is held at the Fed or traded on federal funds market by the recipients of the stimulus (key US financial institutions, who...
Some say this week's FOMC decision will be of historical proportions and be the first time the Federal Reserve will increase the Fed funds rate in almost a decade.
The U.S. dollar index is in a descending trend. Price action is floating above the minor trend created by the top on April 13.
The dollar has not been able to see any significant support higher,...
Following the FOMC minutes on Wednesday, gold has seen a massive two day move that brought the precious metal to five-week highs. Worries mount as market participants are beginning to realize that the Federal Reserve is stuck within a liquidity trap.
The minutes statement indicated that the Fed saw risks to near-term inflation (as the five-year breakeven rate hit...
The U.S. dollar index is sharply down, following a horrendous day for Chinese equities that did not spark any "safe haven" buying. The 8.48 percent drop in the Shanghai composite was the second worst day ever for the composite since 2007.
Traders feared that the Chinese government and the People's Bank of China (PBoC) would pull any assistance to help keep their...
It could be said that it is slightly strange that the Euro isn't weaker. As of writing, EURUSD is trading at 1.1040 after seeing lows of 1.0458 back in February 2015. From March last year until February this year, EURUSD was in a very steep downtrend with a range of ~3500 pips. Since then, the pair has remained relatively stagnant, after seeing a bounce off of the...
Since mid-summer 2014 the 10-Year Treasury Yield started correlating with WTI Crude Oil, which can be seen on the image below:
The correlation was established as a result of dynamics of oil prices, when falling oil was perceived as a risk to inflation. Expectations of lower inflation have driven the 10-Year Yield down with the WTI Oil. Market has perceived...
Gold is hated but most because it is the antithesis of greed, which has been feed for years by central banks around the world.
I'll be frank, I was rather bearish on the shiny metal an forecasted $1,035 per toz. in 2013. However, as the charade of lackluster growth and quasi-monetary policy continued, gold's fundamentals are bullish.
It is too simplistic to...
Overvalued Swiss franc?
On march 19th, 2015 SNB left benchmark interest rates @ -1.25% and -0.5% and -0.75% on deposits, to discourage holding investments in Swiss Franc. The bank believes that the Franc is overvalued and should continue to weaken overtime. The SNB revised down growth in the Swiss economy to 1% from 2%. They believe that a stronger Franc keeps...
Traders knocked gold below $1,200 for the time being, as market participants determine whether or not the Federal Reserve will hike the Fed funds rate for the first time since 2006.
The Fed is stringing along financial markets. Either the economy is strong and deserve a tightening of monetary policy, or it is not. The voting members of the FOMC still remain...
