Well, after months of presidential complaining, tweeting, and pressuring, Donald Trump finally got a rate cut from the Fed. A lower interest rate was supposed to stimulate the stock market and make the dollar cheaper versus the currencies of exporting countries --...
Gold Editorials & Commentary
August 2, 2019
Here are today's videos and charts.
So far, so good! After the first half of the year, gold gained more than 10 percent, rising from $1,279 at the end of December 2018 to $1,409 at the end of June 2019. We invite you to read our today’s article about the gold market in the first half of the year, and...
The price of gold has rejected numerous attempts by the banks to hammer the gold price below $1400 using paper gold derivatives on the Comex and the LBMA. I have not seen gold behave with such resiliency in the last 19 years when the Comex banks have an extremely...
The gold miners’ stocks have surged dramatically this summer, catapulted higher by gold’s major bull-market breakout. That atypical strength bucking the normal summer-doldrums slump has carried this sector right back to its traditional strong season. That begins...
Our researchers have identified a very rare type of price pattern that is typically associated with explosive trend changes and trends. We call this type of pattern a “Sandwich” pattern because of how price reacts within a range. The IWM, Russell 2000 ETF, is...
The Federal Reserve dropped interest rates by 0.25% and the U.S. stock markets fell from all time record new highs. They also signaled to a surprised market that this is by no means an ongoing trend. The markets had to do a double take and were not enamored.
Contrary to majority opinion, gold and especially the gold mining stocks that leverage its macro status are not about inflation, especially cyclical inflation that runs with a positive economy. Making an appropriate return after a few months on hiatus, ladies and...
August 1, 2019
Yesterday, the Fed trimmed down the interest rates. This was widely expected – yet a blunt ruling out of an extended easing cycle wasn’t. The price of gold profoundly declined. Looking beneath the headline, what happened exactly?
The US Federal Reserve’s Federal Open Market Committee (FOMC) today announced a 0.25% cut in the influential US federal funds rate from a target range of 2.25% – 2.50% to a target range of 2.00% – 2.25%, a move which was closely watched and widely signaled, but...
Unemployment in the U.S. is at a half-century low and the S&P 500 is trading at near-record highs. Nevertheless, the Federal Reserve today trimmed interest rates for the first time since the financial crisis on stalled manufacturing growth and an anticipated...
Regardless of the Fed Funds rate policy decision by the FOMC today, the economy is spinning down the drain. Lower rates won’t help stimulate much economic activity. Maybe it will arouse a little more financial engineering activity on Wall Street and it might give a...
Stock market indexes are currently at record or near record highs, even as the chances for recession within the next 1-2 years seem to be rising. So how great would the losses be from these record heights, if the business cycle continues and we get another round of...
July 31, 2019
The great day of the Fed interest rates decision and forward guidance has arrived. There hasn’t been much pre-positioning volatility in the precious markets so far. With the exception of gold perhaps, you might say. Let’s dive in and assess whether a technically...
Let's start by defining investment and speculation, and for this purpose, I have used Investopedia: An investment is an asset or item acquired with the goal of generating income or appreciation. Speculation refers to the act of conducting a financial transaction...
July 30, 2019
Is gold finally due to swoon or can it continue to rally? The naysayers point to overbought conditions on the weekly charts, COT reports showing a mammoth short position held by the commercial traders, and the upcoming stock market “crash season”.
Last week, Boris Johnson became the PM of the UK. The odds of hard Brexit increased, sending pound lower. Now, markets await tomorrow’s FOMC meeting. Gold closely monitors these events and thinks about which way to go next.
The widespread profound and recognized global recession, complete with numerous icon corporate failures, will lead the US Federal Reserve to return to unlimited Quantitative Easing with a Zero Percent chaser. The Jackass calls it a return to Infinite QE Forever at...
“Follow the trend lines, not the headlines,” President Bill Clinton once said. I’m a news junkie myself, but I guarantee you I wouldn’t be where I am today had I based every one of my investment decisions on what the talking heads tell me.
Gold prices have surged in British pounds today as sterling fell sharply on concerns that Boris Johnson may lead the UK and EU into a “hard Brexit.”
The fourth week of July showcased the markets usual "stick save" at the daily 20 exponential moving average (EMA). This gave traders the textbook setup for the bull train to grind higher into all-time highs by week's end.
July 29, 2019
The precious metals sector appears to have started a correction. It was roaring higher until natural resistance kicked in and the US Dollar grinded its way higher, towards its 2019 high. Factor in the Fed decision this week and it has created a natural “buy the...
The best performing metal this week was platinum, up 2.24 percent on hedge funds cutting short positions and flipped the futures composite to a net long. Gold traders and analysts in the weekly Bloomberg survey are split between a bullish and a neutral outlook on...
We have spilled many electrons on the topic of capital consumption. Still, this is a very abstract topic and we think many people still struggle to picture what it means. Thus, the inspiration for this week’s essay.
It is my privilege, now, to welcome in Jp Cortez, with the Sound Money Defense League, a non-partisan national public policy organization working to restore sound money on the state and federal level.
After a failed breakout attempt, the gold price has fallen back into the holding pattern which was established last month. While it may be frustrating for some investors that gold remains locked in a tight trading range, the lack of forward progress in recent weeks...
Last year 22 central banks, situated largely to the east of Germany, bought the largest amount of gold since 1967, the year the London Gold Pool collapsed. The gold repatriations by many European countries of the last few years are another sign that we are reaching...
Lately, the market trend has been reduced to a grinding move to new highs – or is it really “the market”? Inspired by a new high in the Nasdaq 100, SPX made a new high this past week! But the Dow did not! And the NYSE composite – the broadest exchange of all –...
July 28, 2019
Stocks are finishing multiple patterns of varying degrees of trend that look close to completion. Patterns are the market speaking to us. Markets know where they are headed next. These patterns are the accumulated price action from all investors everywhere with all...
As I expected, after bouncing off the bottom of an 18% correction late last December, and a minor 7.5% correction on May 31st, the Dow Jones is losing steam as it began making new all-time highs in early July. Taking into consideration how many years this advance...
