Posts On Economic and Geopolitical News

September 20, 2017 |

With or Without Tax Reform Gold Likely to Win

Markets have been on more solid footing in recent days as a quiet North Korea and the notion of tax reforms stoked investors’ appetite for risk. Much has been made of the potential Trump tax reforms, and the President is attempting to make good on a key campaign promise. At the same time that hopes for a tax plan have been seemingly rekindled, the U.S. reached a significant milestone in its ongoing debt problem. In fact, as of the Friday before last, the nation was... Continue Reading

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September 18, 2017 |

Are Markets Ready to Ignore North Korea?

North korea missile

The ongoing conflict with North Korea has been going on for months now, and it has at times shaken global financial markets. The tough rhetoric coming from both sides has kept investors on edge, although the threats from North Korea may begin to fall on deaf ears. Tough talk from the North has been largely absent in recent days, until today. A North Korean State agency reportedly threatened to use nuclear weapons to “sink” Japan and reduce the United States to “ashes and darkness.” The... Continue Reading

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September 12, 2017 |

Gold set to Continue Higher

found a bottom

Gold prices have slowed down a bit in recent action following strong gains seen in recent weeks. In fact, the yellow metal now looks poised for a run at the $1400 per ounce price level, and there really does not appear to be much standing in gold’s way. As we discussed previously, a pullback allowing some back and fill trade in gold is not only likely, but also a good thing. Markets rarely go straight up or straight down, and when they do such moves... Continue Reading

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September 8, 2017 |

Time for Some Back and Fill?

highs near

As we have stated for some time now, gold could be at the early stages of a multi-year protracted bull market. In recent action, gold has eclipsed its previous swing highs and has covered some serious ground in a short period of time. Although we believe that further upside-and lots of it-is likely to be seen in gold in the coming weeks and months, no one has “missed the boat” as of yet, and now is as good a time as any to start adding... Continue Reading

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September 7, 2017 |

Nuclear Chicken

Over the weekend, North Korea reportedly performed a successful test of a hydrogen bomb. The underground test caused significant seismic activity, and state media was quick to call the test a success. This latest provocation by North Korea has upped the stakes once again. For those of you who do not know what a hydrogen bomb is, it is a nuclear device that uses fusion (or the joining of atoms) rather than fission (or the splitting of atoms) to release energy. The fusion bomb is... Continue Reading

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September 4, 2017 |

A Sea of Black Swans

Let’s be clear about something: The ongoing escalation in tensions with North Korea may be having an effect on the gold market, but is it not the primary driver of gold. Gold had a very strong session on Monday to begin the trading week before news of another missile test by North Korea hit the wires. The fact is, there are numerous potential black swans that could really derail global equity markets and drive a massive spike in risk aversion and overall market volatility. North... Continue Reading

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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 29, 2017 |

3 Reasons You Should Be Buying Gold Right Now

More Trouble Ahead

Although the reasons to buy physical gold are many, there are currently three primary themes that make buying the yellow metal at current levels a potentially great decision. Stocks could finally be on the verge of a catastrophic collapse: The bull market is a decade old-a decade- and is finally showing signs of total exhaustion. With the economy continuing to produce sub-ideal growth and with stock valuations arguably stretched at current levels, the time may be ripe for the next major stock market crash. A... 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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