October 12, 2017 |

Geopolitics Remain a Key Driver

Gold has gotten the week off to a strong start, moving sharply higher on Monday and seeing follow-through upside on Tuesday. The metal is likely seeing renewed buying interest as the geopolitical landscape continues to warrant risk aversion. The recent vote by Catalonia to secede from Spain is just one of several key issues that could potentially fuel risk aversion. Over the weekend, thousands of Spaniards protested the potential move, and it remains unclear if the region will in fact break away from the rest... Continue Reading

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October 10, 2017 |

The Market’s Demise May Be Another Step Closer

The stock market continues to show strength as it remains on a decidedly upward trajectory. Recent articles in financial media have even discussed the possibility of a good old-fashioned melt-up in stocks from current levels. Although the market could certainly see further gains from current levels, eventually the stock bulls will run out of gas and things will turn. While no one knows when stocks could reverse course or even collapse, the magnitude of those declines would seemingly be increasing with each and every new... Continue Reading

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October 6, 2017 |

Could Higher Rates Derail Gold?

Interest Rate Block

It seems that a big deal has been made of the latest FOMC meeting at which the Fed reiterated its plans for another rate hike in 2017, and three hikes next year. Will the Fed make good on its promise? That’s an entirely different question. It is important to keep in mind that the Fed was originally planning on raising rates three times in 2016, yet only one hike actually materialized at the end of the year. Could the Fed end up electing to hold... Continue Reading

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October 4, 2017 |

Don’t Be Fooled

George Washington

The gold market has come under some selling pressure in recent weeks and can be viewed in one of two ways: First, that the recent rally is failing and that further downside could potentially be seen or, secondly, that the current dip from recent highs is nothing more than back and fill trade and an excellent opportunity to buy gold at a relative discount. Sure, the dollar index has been rebounding a bit and that may be weighing on gold. And yes, stocks remain at... Continue Reading

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September 28, 2017 |

A Powder Keg

Gold is seeing a moderate pullback on Tuesday following gains to start the week. The situation with North Korea appears to be deteriorating, and investors finally appear to be waking up to the fact that an armed conflict could potentially be seen in the coming weeks or months. North Korea has stated that the U.S. has declared war on the nation, and has also threatened to attack U.S. bombers even if not in North Korean airspace. This follows President Trump’s threat to destroy North Korea... Continue Reading

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September 26, 2017 |

Buying Opportunity

The price of gold has seen some moderate declines in recent days. Although some may attribute these declines to the FOMC meeting commentary on Wednesday, there may be other, simpler forces at work. On Wednesday, the Fed reiterated its plans for another interest rate hike this year, and the central bank says it remains on track for another three rate hikes next year. The Fed seems intent on following through with its plans despite a significant lack of inflation and other issues that could potentially... Continue Reading

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September 22, 2017 |

Anything New From the Fed?

FED

The highly anticipated FOMC meeting has now come and gone. Although the central bank elected to leave rates unchanged-for now any-the bank did announce it would start the process of reducing the size of its massive balance sheet. This announcement did not come as a surprise to markets, and thus far the market’s reaction to the announcement has been pretty quiet. The central bank stated that it will begin the unwinding process in October, reducing its balance sheet by $10 billion per month. The Fed... Continue Reading

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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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