A Bottom May Be Near

The gold market has not seen a lot of upside in recent months, and during that time investors have become increasingly bearish on the metal. The market has had a lot of headwinds to deal with including rising stocks, a stronger dollar, increasing interest rates and strong investor appetite for risk. Stocks have remained stubbornly strong, while the dollar has seen significant upside as inflation and interest rate expectations have increased. Markets do not typically move in one direction or the other indefinitely, however, and... Continue Reading

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The Hits Keep on Coming

The gold market has remained under some renewed pressure, as slow summer trading conditions as well as a lack of risk aversion continue to take a toll on the metal. With so many issues currently working against the market, it is not surprising that prices have thus far been unable to rally. The dollar index has played a huge role in gold’s lack of upside in recent months. The greenback is hovering around a 12-month high still, and has thus far not shown any real... Continue Reading

Could This Be the Market’s Undoing?

There is no shortage of potential headwinds when it comes to stocks. The potential for a larger war over trade, a stronger dollar, higher inflation and a more hawkish Fed could all potentially weigh on equities and risk assets. There is another issue currently at work, however, that could possibly prove to be the catalyst for an end to the bull run in stocks. This issue is likely unknown to the majority of investors, but could play a powerful role in the stock market’s demise.... Continue Reading

Opportunity Knocks

The gold market has been on the defensive in recent weeks, and the selling pressure has remained fairly constant. In another recent post, the idea of a “bearish extreme” was discussed, as it is oftentimes a good time to buy when the rest of the world is selling. Eventually, that selling becomes exhausted, as there may simply be no one left to sell after long periods of declines. A very good potential clue that the market may be reaching- or perhaps has already reached-such a... Continue Reading

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Take Advantage Now

The gold market continues to remain on the defensive, as prices have not been able to distance themselves from 12-month lows. Weaker crude oil, a stronger dollar, rising yields and higher stocks have all taken a decidedly bearish toll in recent weeks. Selling pressure has seen the metal drop to 12-month lows, while also potentially threatening to take it down even further. Sentiment in the sector is bearish, and could arguably be seeing an extreme level that may not be sustainable. In other words, right... Continue Reading

Watch the Yield Curve

Investors and global financial markets have done a fantastic job of remaining optimistic despite numerous potential headwinds. Ongoing tensions over global trade, higher oil prices and rising interest rates are just a few of the major issues that markets are contending with. There is something else happening behind the scenes, however, that could point to major troubles ahead. The flattening of the yield curve is becoming more and more a cause for concern, and the idea of the curve becoming inverted is a distinct possibility.... Continue Reading

Now is the Time to Buy

Gold prices have slumped to a 12-month low, as investors remain hungry for risk and as stock markets continue their ascent back towards previous highs. Although gold has been lacking any significant, bullish catalyst in the short-term, the long-term outlook for the metal looks as bright as ever. Some of the most successful investors seem able to recognize value, while also having a knack for identifying market turning points. These investors understand the notion of market cycles and understand the importance of going against the... Continue Reading

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Not So Fast

The U.S. Dollar has been on a tear in recent months, and is currently trading around a 12 month high. The strength seen in the currency in recent months has almost certainly been a major factor in gold’s recent lack of upside, and further gains in the greenback could keep the pressure on. The significant impact the dollar has had on the gold market is not likely to continue indefinitely, however, and once this trade reverses course the outlook for the metal could be extremely... Continue Reading

Is a Full-Blown Depression in the Cards?

As investors await the latest FOMC meeting minutes, the ongoing battle over global trade remains at the forefront of attention. China, the EU, the U.S. and other regions thus far appear determined to dig in and try to hold their ground as tensions over trade escalate further. The current tit-for-tat exchanges of tariffs could be only the beginning, with even larger measures potentially being implemented. Although the opinions are quite varied as to how a global trade war could play out, such a scenario could... Continue Reading

A Buying Opportunity

The gold market has continued to see selling pressure as a combination of bearish factors take a toll on market sentiment. While the recent slide in gold prices may be viewed as “bearish” or a negative by short-term traders, smart long-term investors will likely welcome lower prices. The notion of rising interest rates, a strong appetite for risk and a stronger dollar have all affected gold and hard assets. Sentiment is currently very poor, and the market’s technical posture is also lacking. Key moving averages... Continue Reading