Posts On Economic and Geopolitical News

March 8, 2017 |

So What if the Fed Hikes?

Interest Rate Block

The idea of rising interest rates has been pondered by markets for some time. Given some recent commentary, it seems that the pace of rate hikes could potentially be even faster than originally anticipated. Speaking on Friday in Chicago, Fed Chairwoman Janet Yellen reiterated that an interest rate hike “would likely be appropriate” if the economy remained on track. Her comments come after several other central bank officials have also made more hawkish comments about the economy and pace of interest rate hikes. The central... Continue Reading

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March 6, 2017 |

A Sign of Strength

Rally

The Dow has hit a major milestone – 21000. Markets continue to cheer on the Trump administration, and are moving higher on hopes of stronger economic activity and tax cuts. Interest rates have begun to rise again, and the dollar index is also on the move to the upside again. Interest rates could potentially challenge their post-election highs while the dollar index could do the same. The Fed has sounded significantly more hawkish, and a March interest rate hike is now not only very much... Continue Reading

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March 2, 2017 |

Buy the Dips

George Washington

The gold market has posted solid gains since the beginning of the year, and thus far is not showing any significant signs of slowing down. From a technical standpoint, the yellow metal looks poised to make another run to the upside. What makes all of this especially interesting is the fact that gold is rising along with stocks. Even bonds have been moving back up as rates have been declining. So what gives? It would seem to be very clear that despite new all-time highs... Continue Reading

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February 28, 2017 |

Remember that Debt Ceiling Thing?

Debt Chain

The nation’s spending limit is quickly coming up, due to expire on the 15th of March. The debt ceiling is a hotly debated topic, and unless Congress acts to expand the debt limit, things could potentially get quite crazy. Back in 2011, the debate over the debt ceiling helped fuel a rally in gold that took the yellow metal to all-time-highs. Standard & Poor’s downgraded the U.S. credit rating that year, sending shockwaves through global markets and putting into question the country’s status as the... Continue Reading

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February 22, 2017 |

A Return to the Gold Standard?

Alan Greenspan; economy

The gold standard has been an issue that has been debated for some time by proponents of such a system as well as opponents of such a system. Although some analysts might believe that a return to a gold standard is highly unlikely in today’s modern global economy, proponents of such a monetary system still make interesting arguments for its consideration. In a recent article from Kitco.com, former Fed Chairman Alan Greenspan reportedly had some interesting insights. Per the article, Greenspan was quoted in the... Continue Reading

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February 20, 2017 |

Rising Inflation

fresh QE

The gold market may potentially be benefiting from rising price pressures, among other things. The yellow metal has performed well in recent weeks, and has been on the stronger side of the ledger even in spite of stocks making fresh all-time highs and the dollar index remaining higher. This week saw some key inflation data that showed price pressures are on the rise. On Wednesday, the latest reading on the Consumer Price Index showed a rise of .6 percent last month, well above consensus estimates... Continue Reading

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February 16, 2017 |

Take Your Pick

Coin Collection

The gold market has been trending higher for the last few weeks, and in our view with good reason. Despite some higher equities and fresh all-time highs being made in stocks, a degree of risk aversion still remains in the marketplace. Of note is the fact that gold has been rising along with interest rates-could that potentially spell trouble for stocks? Among a number of potential catalysts for higher gold prices, here are three that may potentially keep a floor under the yellow metal and... Continue Reading

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February 14, 2017 |

Good Things Come to Those who Wait

The White House

The stock market recently forged fresh all-time highs as President Donald Trump promised quick action on tax reforms. Stock markets had been seeing some consolidation in recent trade, as investors appeared to be taking a wait and see approach. Without a doubt, the new administration has hit some stumbling blocks. The recent immigration bad was halted by a federal judge, and thus far appeals on the ruling have not been favorable for the administration. Trump adviser Kellyanne Conway may potentially be in some hot water... Continue Reading

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February 10, 2017 |

Is Silver in a Can’t Lose Situation?

Silver Coin

The Trump administration has been in office for just about three weeks, and things have certainly gotten interesting. Although the recent immigration ban and halt to the U.S. refugee program have dominated headlines in the last week or so, investors are still anxiously awaiting the new administration’s plans for tax cuts and infrastructure spending. Stocks and risk assets saw a nice ride higher in the aftermath of the Trump election victory, and have since cooled a bit. The dollar too, saw a nice move higher... Continue Reading

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February 8, 2017 |

Steady as She Goes

Travel Ban

With little economic data set for release this week, investors will likely focus on the recent FOMC meeting as well as any headlines regarding the Trump administration’s travel ban and other policies. Last week, the FOMC voted to keep rates steady at current levels and did not give much of a time table in terms of hiking rates further. Although markets were not expecting any action from the Fed last week, the lack of further clarity on additional hikes could potentially fuel more buying interest... Continue Reading

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