Posts by Kirill Zagalsky

May 3, 2017 |

Could The Fed Be Stuck Between a Rock and a Hard Place?

Shipping containers

The notion of additional interest rate hikes from the Federal Reserve has certainly weighed on the gold market in recent months. On the other hand, however, the pace and timing of any additional rate hikes remains likely to be slow and incremental, which could be considered bullish for gold. This week could potentially provide some very good clues as to the central bank’s plans going forward. Weakness in some key economic data, along with the current geopolitical landscape could potentially give the central bank reason... Continue Reading

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April 19, 2017 |

Geopolitics and Gold

North korea missile

The last week has seen some interesting developments in the world of geopolitics. Although much of investors’ attention has been focused on Russia and China in recent months, this week may be very indicative of exactly who may be enemy #1 right now for the U.S. North Korea has continued in its saber-rattling and appears set to continue in its quest for nuclear weapons. This nation (which some refer to as “rogue”), appears to be the single biggest threat to U.S. National security currently. Over... Continue Reading

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April 13, 2017 |

Should You Start To Worry?

Syria Map

Stocks are lower on Tuesday as ongoing risk aversion appears to be on the rise. Any why wouldn’t it? In the last week, the United States has struck Syria with 50 Tomahawk cruise missiles in retaliation for another chemical weapons attack unleashed by the country on its own innocent people. Russia has voiced its concerns over the U.S. military action taken, and relations between the U.S. and Russia could potentially deteriorate significantly if some common ground on the issue is not found-and found soon. To... Continue Reading

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April 7, 2017 |

Do They Have It All Wrong?

Herd Mentality

There seems to be a large consensus that the potential for further rate hikes from the Fed in the second quarter and beyond could derail the rally seen in gold in recent months. A more aggressive central bank, a stronger dollar index and robust appetite for risk are all reasons given for what could be the yellow metal’s “demise.” Thus far, however, none of these issues or potential issues has been able to put a halt to the buying in gold. In fact, the gold... Continue Reading

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April 4, 2017 |

Does Quiet Mean Noise Ahead?

Calm before storm

The gold market has been trending higher in recent weeks as geopolitical uncertainty keeps a floor under prices. The yellow metal has performed quite well given the fact that stocks remain not far from recent highs and the dollar index may be recovering. Of particular note, however, is the fact that gold trading volumes have been low. Not only that, but sales of gold bullion have been very low. Why might this be you may be asking? It’s possible that many investors are trying to... Continue Reading

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March 28, 2017 |

Obamacare Vote

Health Care Sign

The stock market has been riding high since the Donald Trump Presidential election victory. Stocks have been moving higher and higher as interest rates rose and gold tumbled. Gold has rebounded strongly, however, and stocks appear to be at a crossroads currently. The stock market is having its work week since November, and recently saw the first down day of greater than one percent since October. In fact, equities appear to be in the midst of a breakdown from their recent trading range, and more... Continue Reading

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March 22, 2017 |

Was the Fed More Dovish Than Expected?

George Washington

Last week, the FOMC meeting took place over Tuesday and Wednesday with the central bank’s decision to raise the Fed Funds rate by a quarter point being announced at the meeting’s conclusion. The decision to hike rates came as no surprise. The Fed had taken steps to inform markets that a rate hike was not only possible but likely coming several weeks ago. Clearly, the Fed did not want to upset financial markets by catching investors off-guard with an unexpected rate hike. The Fed did... Continue Reading

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March 16, 2017 |

Will the Rally Resume?

major hurdles

After getting 2017 off to a stellar start, the gold market has been under some pressure in recent weeks, declining by over $60 per ounce. The selling seen in recent sessions could potentially provide another opportunity to buy gold at lower levels. The gold market apparently did not fully discount a March rate hike from the Fed. The central bank has taken a decidedly more hawkish tone in recent weeks, and essentially informed markets that a March hike was not only on the table, but... Continue Reading

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March 10, 2017 |

Is It About to Hit the Fan?

Gray Capital Building

Stocks just seem to keep going and going…Markets have moved higher on the notion of significant tax reforms and a big boost in fiscal spending. Financials have cheered on the idea of less regulation and potentially higher interest rates. Much of the economic data has continued to point to ongoing improvement, and inflationary pressures are on the rise. While it seems right now that markets could potentially continue higher from current levels, some believe that the markets may be in for a big surprise. In... 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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