Posts by Kirill Zagalsky

May 14, 2019 |

Three Reasons Another Recession is Inevitable

Another Recession

Some analysts in recent months have suggested that the U.S. could be headed for another recession. The ongoing U.S./China trade war, fading effects from tax cuts and government spending and an aging expansion are just a few of the reasons cited. Other analysts have suggested that recent economic weakness and market declines are normal and simply some bumps in the road. Whether the next recession hits this year, next or in the next few years, it will arrive. Here are three simple reasons that a... Continue Reading

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May 8, 2019 |

Active Buyers Follow the Money

Active Buyers

According to a recent report from Financial Times, the People’s Bank of China has continued to add gold to its reserves for the fifth month in a row. The central bank reportedly added 480,000 ounces last month bringing its total holdings to $78.3 billion. China hasn’t been the only buyer of the metal either. Numerous emerging market central banks have been active buyers as nations seek to diversify their reserves away from the dollar. Last year, central banks reportedly bought some $27 billion worth of... Continue Reading

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May 3, 2019 |

Key Divergences Point to Higher Gold

Gold Resilience

Following some recent declines, the gold market has not accomplished much thus far in 2019. Although many of the so-called “experts” may pounce on this fact, we see it as a significant positive for the market. Not only is it a positive, but it could potentially be indicative of a major rally on the horizon. Here’s why we can count on gold resilience: Gold has endured a stronger dollar: Typically, the dollar and gold have a negative correlation. That is to say that when the... Continue Reading

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April 23, 2019 |

Has the Dollar Peaked?

the dollar peak

The stronger dollar has likely been a major factor in gold’s lack of upside follow-through in recent months. The currency hit its highest level of the year last week but is seeing a mild pullback today in early action. The greenback’s strength is not really all that surprising – it has benefitted from concerns over global growth and interest rate differentials. The Dollar Is Near a Top… The dollar may be at or near a top, however, and could soon see a significant price reversal.... Continue Reading

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April 19, 2019 |

Lower Prices Not to Be Feared

lower prices; gold bars

The gold market has been under pressure in recent days, and prices are trading at their lowest point of the year. Numerous “analysts” have already covered gold’s fall through support in the $1280-$1290 region and have suggested that lower prices may be in store. For the patient, long-term investor, this is a positive that should be welcomed. The notion of buy low, sell high is not new and has served investors well for ages. Are You Considering Lower Prices or Good Value? Long-term investors should... Continue Reading

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April 12, 2019 |

Surprise, Surprise… The Fed Is Stuck

on track to

Wednesday afternoon brought the release of the latest Fed meeting minutes. The minutes detailed what some analysts already knew: The central bank is on hold for the rest of the year and will not raise rates further. The Central Bank Is on Hold for 2019 Numerous Issues Cited by the Fed The Fed cited numerous issues that weighed in its decision: A general unease over the U.S. and global economies, the ongoing trade war with China, a lack of inflation and a messy Brexit. Fed... Continue Reading

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April 8, 2019 |

Buy the Rumor, Sell the Fact

Stock markets have recently put together an impressive string of gains that has taken the benchmark S&P 500 above previous resistance. Stocks could potentially be headed for an attempt at fresh all-time highs as volatility continues to decline. And why shouldn’t they? The Fed has become increasingly dovish; a U.S./China trade deal may be getting close, and jobless claims are at the lowest level in 50 years. Against this positive backdrop for stocks, however, lurk a number of issues that could derail risk assets in... Continue Reading

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April 3, 2019 |

Central Bank Demand for Gold Surging

the week ahead

Central bank demand for gold reportedly hit the highest levels in 2018 since the end of the Bretton Woods system of dollar convertibility in 1971. With some analysts referring to gold as some type of meaningless relic, this begs the question of why the biggest financial institutions on the planet are looking to acquire even more gold. Store of Value Gold has a very long history as a reliable store of wealth and value. In the post-Bretton Woods era and without a return to some... Continue Reading

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March 29, 2019 |

6 Reasons We Could See a Weaker Dollar

weaker dollar, gold strength

As a dollar-denominated commodity, the gold market can be heavily influenced by strength or weakness in the greenback. Dollar strength may weigh on gold as it makes the metal relatively more expensive for foreign buyers, while a weaker dollar may boost the price of gold as it makes the metal relatively less expensive. The relationship between gold and the dollar, and all other paper currencies for that matter, is so important that investors often buy the metal as a hedge against a weaker dollar. Although... Continue Reading

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March 27, 2019 |

The Fed’s Towel-Throw Could Spell Trouble for Stocks

USA Federal service USA Federal Reserve Trouble for Stocks

At its most recent meeting on monetary policy, the Fed outdid many of even the most dovish expectations. The central bank essentially came out and said – without actually saying it – that trouble for stocks is ahead, and the next recession is approaching. All the Fed’s previous talk about further rate hikes in 2019 and the balance sheet run-off continuing on autopilot were completely wrong. Although the central bank could potentially hike once more in 2020, such a move could be more of a... Continue Reading

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