Posts by Kirill Zagalsky

August 31, 2017 |

Is Risk Aversion Set to Take Center Stage?

North korea missile

In a highly provocative act, North Korea conducted another missile test Monday afternoon that set gold, stock index futures and currencies on the move. The missile reportedly flew over Japan and landed in the Pacific Ocean off the waters of the northern region of Hokkaido. The last time a projectile from North Korea flew over Japan was 2009. The U.S. and Japan believed that launch to be a test of an ICBM, while North Korea claimed it was simply a rocket carrying a satellite into... Continue Reading

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August 25, 2017 |

Will Central Bankers Ignite the Next Leg Up?

Gold has been trading around the $1300 mark for several sessions now, and the yellow metal may simply be biding its time until there is enough buying “tinder” to stage a clean upside breakout above the recent highs. Fortunately for the gold bulls, there are numerous issues that could potentially fuel a significant break higher in prices, and one of them could be this week’s Fed symposium taking place in Jackson Hole, Wyoming. This symposium is hosted by the Kansas City Federal Reserve and essentially... Continue Reading

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August 21, 2017 |

Surprise Surprise

on the way

The gold market got a nice boost in early action on Thursday as some global central banks remain decidedly dovish regarding monetary policy. For the time being, a lack of inflationary pressures appears to be greenlighting central banks to keep their feet on the gas pedal, and low rates may be the norm for some time to come. The recently released minutes for the latest ECB meeting echoed concerns of the U.S. Fed. Citing inflation levels that continue to run below target levels, the ECB... Continue Reading

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August 15, 2017 |

Bears Beware

All-time highs

Trading gold over the last several months may have been profitable for those active traders who bought the bottom of the range and sold the top. As with any trade or investment, however, the more times the trade works the greater the danger of returning to the well one too many times. This may be exactly the case with gold as it approaches its recent highs. There will likely be those looking to sell the recent rally and strength in gold, and those investors may... Continue Reading

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August 9, 2017 |

Are Investors Ready for Market Volatility

Stock Market Panic

Investors may be completely unprepared for market volatility at this point. It has been a long time since the market saw a 5% decline, and markets have not seen a significant pullback of any kind in years. This has kept a lid on market volatility as measured by the CBOE’s VIX. You don’t need the VIX gauge, however, to tell that markets have seen very little in terms of large price swings. In fact, stocks have gone sideways to higher for quite some time. Perhaps... Continue Reading

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August 3, 2017 |

Are Gold and Market Volatility About to Explode?

With all that is going on in the world right now, the word “explode” may be a poor choice. The North Korean saber-rattling has continued, with the nation testing another intercontinental ballistic missile just days ago. This provocative action by the North Korean regime did not go unnoticed, and the U.S. along with Japan and South Korea responded with a show of force. This ongoing situation could be reaching a critical juncture, and it remains unclear how the U.S. and its allies will respond to... Continue Reading

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July 28, 2017 |

Same Old Same Old from the Fed

George Washington

Wednesday afternoon saw the conclusion of the latest FOMC monetary policy meeting at which the central bank, as expected, left key interest rates unchanged. The Fed also addressed its massive balance sheet, and appears to be on track for reductions starting in September or October. The central bank is likely to tread very carefully, however, as it looks to contract its balance sheet without sending shockwaves through financial markets. The central bank seems to be of the opinion that the economy is ready to stand... Continue Reading

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July 24, 2017 |

This Could Be It

investment in gold

Gold is moving higher again today, as the yellow metal continues to gain upside momentum. After declining to nearly the $1200 per ounce level earlier this month, gold has seen solid buying interest and has recouped almost $50 per ounce. Recent price action could potentially be indicative of a major reversal in gold, and an upside breakout could see prices move significantly higher. Although gold may have some bearish issues working against it, the metal also has a number of bullish factors that appear to... Continue Reading

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July 18, 2017 |

Where is the Inflation?

Active Buyers

Inflation data released today showed the ongoing absence of price pressures that could force the Fed to be more aggressive when it comes to monetary policy. The U.S. Labor Department reported this morning that the U.S. Consumer Price Index was unchanged in June. Consensus estimates were looking for a rise of .1%. Year-over-year CPI was also below consensus estimates, with an annualized reading of 1.6%. All major components of the index showed broad-based weakness, with energy prices in particular showing a significant decline. Core inflation... Continue Reading

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July 12, 2017 |

Keep Buying

dip

Gold has been on the defensive in recent trade, and prices are approaching the $1200 per ounce level. Recent hawkish commentary from the Federal Reserve, as well as from the central banks of Canada, Europe and even Japan have kept animal spirits going as investors anticipate the end of the easy money era. Although some investors may consider this to be cause for celebration, it is also important to consider just how long it has taken to get to this point. After all, the U.S.... Continue Reading

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