Not to mention that back in 2008 - 2009, the price
of gold rallied in a low interest rate environment.
Bar
of Gold rallied from the back of the pack, overcoming 60 - 1 odds to beat out favorites Unique Bella and Ami's Mesa in a photo finish to win the 7 - furlong race.
With that said, I'm speculating that we are likely to see declines in the market as the value
of gold rallies.
Not exact matches
Jinping's comments spurred a
rally in global equity markets, that capped
gold's safe haven appeal despite the weakening dollar, said Bob Haberkorn
of RJO Futures in Chicago.
Gold usually
rallies in times
of inflation.
«6
of the last 7 big
rallies in
gold did have substantially high volume compared to the declines that happened before that,» said Ciana referring to a weekly chart
of gold.
«From 2010 we've traced a beautiful five - wave decline down in
gold, we've
rallied back and all
of a suddenly everybody was very bullish on
gold,» said Gordon, tracing the precious metal's path since the turn
of the decade.
If true, this should accelerate upward momentum
of Treasury yields and the U.S. dollar — currently at a 14 - year high — which could dampen
gold's chances
of repeating the
rally we saw in the first half
of this year.
Realistically, if
gold can't
rally while Saudi Arabia is undergoing a real - life «Game
of Thrones,» I'm not sure what is left to provide a tailwind.
«The extent and speed
of the
rally in
gold prices is somewhat surprising as there are few pressing reasons to be bullish, indeed there are more headwinds than tailwinds,» ScotiaMocatta said in a monthly note, citing rising U.S. equity markets as well as higher U.S. interest rates.
THE recent move by the Bank
of England to sell 125 tonnes
of gold this year stopped dead a
rally in the precious metal.
Caused by worries
of a summer interest rate hike and uptick in the U.S. dollar,
gold and silver both stalled in May but have since
rallied on the back
of Brexit and with government bond yields in freefall.
After escaping the summer doldrums,
gold has been edging up in recent weeks, raising the possibility
of a
rally in the final quarter
of 2015.
The MSCI Global
Gold Miners Index has rallied an incredible 76 % this year, but much of the performance is due to the recovery in valuations: According to Bloomberg data, gold miner stocks were battered last year, with the index down 45 % from its 2015 h
Gold Miners Index has
rallied an incredible 76 % this year, but much
of the performance is due to the recovery in valuations: According to Bloomberg data,
gold miner stocks were battered last year, with the index down 45 % from its 2015 h
gold miner stocks were battered last year, with the index down 45 % from its 2015 high.
A group
of traders recently surveyed by Bloomberg revealed they are the most bullish on
gold since the end
of 2015, soon before it
rallied in its best first half
of the year since 1974.
We have seen the biggest bounce /
rally for the US dollar in two years and it has pushed
gold down off
of its $ 1350 - $ 1360 resistance zone.
Higher
gold and silver prices enabled mining stocks to
rally sharply during the first four days
of this week, with two
of the world's largest producers
Ms. Knoop applied for a permit to hold a
rally on the steps
of the
gold - topped, Greek Revival State House in Montpelier and said a group called the Peace & Justice Center handled the liability insurance.
Following a January
rally, the global commodities complex underwent declines in February before partially recovering in March; for the first quarter as a whole, the benchmark Thomson Reuters CoreCommodity CRB Index (CRB) gained 0.8 % on a price - only basis.1 Among the 19 component commodities tracked by the CRB, advancers had a slight edge over decliners, buoyed by growth in global economies and weakness in the trade - weighted US dollar, which retreated 2.1 %, according to the Federal Reserve's (Fed's) US Dollar Index.1 Aside from robust gains for a host
of agricultural products, oil and
gold were also among the commodity winners.
We have benefited from this year's
rally in stocks and bonds (our Multi Asset Risk Strategy ETF Model Portfolio has a Sharpe ratio
of over 3 this year — and that's with no leverage), but we are managing our risk by incorporating asset classes such as
gold through the iShares Gold Trust (IAU); liquid alternatives through the IQ Hedge Multi-Strategy Tracker ETF (QAI), long - dated Treasuries through the iShares 20 + Year Treasury Bond ETF (TLT)-- each of which diversify our portfolio risk and carry well within an ETF portfolio constr
gold through the iShares
Gold Trust (IAU); liquid alternatives through the IQ Hedge Multi-Strategy Tracker ETF (QAI), long - dated Treasuries through the iShares 20 + Year Treasury Bond ETF (TLT)-- each of which diversify our portfolio risk and carry well within an ETF portfolio constr
Gold Trust (IAU); liquid alternatives through the IQ Hedge Multi-Strategy Tracker ETF (QAI), long - dated Treasuries through the iShares 20 + Year Treasury Bond ETF (TLT)-- each
of which diversify our portfolio risk and carry well within an ETF portfolio construct.
And there is no shortage
of potential catalysts to move this
rally in precious metals, both
gold and silver, beyond the skepticism phase: military intervention on North Korea, government shutdown as the debt ceiling is reached in September, further implications
of Trump's collusion with Russia, and the beginning
of balance sheet reduction later this year by the Fed, to name just a few.
In the short run, the end
of QE3 will most likely not change anything and
gold will most likely decline on a dollar
rally.
Gold futures climbed the most in five months as a
rally for oil prices revived demand for the metal as a store
of value.
Gold is
rallying right now, but as I told Daniela Cambone in last week's «
Gold Game Film,» it has little to do with Russian geopolitics, or even trade war fears, which have subsided somewhat in the past couple
of weeks.
Since the beginning
of the second quarter
of this year, spot
gold has been trading in a tight $ 100 range, with the price
of the precious metal more or less confined in the $ 1,200 - 1,300 per troy ounce band — and investor demand for the yellow metal has been continuing to wane as the global stock - market
rally continues unabated.
The Japanese Yen and
gold are both trading lower after yesterday's safe haven
rally, as the imminent threat
of the widening
of the Syrian conflict eased, but we wouldn't rule out another quick change in sentiment, even as early as today, and the precious metal remains one
of our favorite bets in the current environment.
The
rally in
gold to $ 1800 was partly a result
of the decrease in US real rates and the inverse relationship that this has with
gold.
This suggests that speculators have been stubbornly optimistic in the face
of a falling price, which is far from the ideal situation for anyone hoping for a
gold rally.
There are many unanswered questions that go way beyond the seemingly most pressing ones
of wanting to know when
gold and silver will
rally, and by how much?
The Market Vectors Egypt ETF (NYSEArca: EGPT) spiked 14.14 percent in the week ending Wednesday, July 3 following the unseating
of President Mohammed Morsi, and
gold miner funds
rallied as much as 13 percent.
Impatient
gold investors may have overemphasized the short - term potential
of this skirmish to ignite a
rally.
When individual
gold stocks are down this much, they can have big percentage bounce back
rallies in a short amount
of time.
May 3 - Rising costs start to squeeze American businesse CNN Money May 3 - Home Prices Jump Again And «$ 3 Gas Is Coming» Dollar Collapse May 3 -
Gold price claws its way higher on Fed meeting and geopolitics
Gold - Eagle May 2 - Q&A on SS Central America
Gold Coins CoinWeek May 2 - Goldman says case for owning commodities has «rarely been stronger» than it is now CNBC May 2 -
Gold, Silver See Corrective Bounces Ahead
Of FOMC Statement Kitco May 1 - Gold Eagle Sales Still Faltering While Mining Output Collapses — Perfect Storm Daily Coin May 1 - Relentless USD Rally Is Precious Metal Kryptonite GoldSeek Apr 30 - Venezuelan Inflation: The Demise of Fiat Currency in Real Time GoldSilver Apr 30 - Silver Market Update Clive P. Maund Apr 27 - Finest 1913 Liberty Head 5 - cent coin will headline ANA auction Coin World Apr 27 - PCGS security features help police nab suspects in robbery case Coin Update Apr 27 - The Most Famous Coin of Antiquity — the Athenian Owl Coin Week Apr 27 - Gold gains but remains vulnerable after Korean leaders meet Reuters Apr 26 - The Era of Very Low Inflation and Interest Rates May Be Near an End NY Times Apr 26 - What Is Gold: Asset, Commodity, Currency Or Collectibl
Of FOMC Statement Kitco May 1 -
Gold Eagle Sales Still Faltering While Mining Output Collapses — Perfect Storm Daily Coin May 1 - Relentless USD
Rally Is Precious Metal Kryptonite GoldSeek Apr 30 - Venezuelan Inflation: The Demise
of Fiat Currency in Real Time GoldSilver Apr 30 - Silver Market Update Clive P. Maund Apr 27 - Finest 1913 Liberty Head 5 - cent coin will headline ANA auction Coin World Apr 27 - PCGS security features help police nab suspects in robbery case Coin Update Apr 27 - The Most Famous Coin of Antiquity — the Athenian Owl Coin Week Apr 27 - Gold gains but remains vulnerable after Korean leaders meet Reuters Apr 26 - The Era of Very Low Inflation and Interest Rates May Be Near an End NY Times Apr 26 - What Is Gold: Asset, Commodity, Currency Or Collectibl
of Fiat Currency in Real Time GoldSilver Apr 30 - Silver Market Update Clive P. Maund Apr 27 - Finest 1913 Liberty Head 5 - cent coin will headline ANA auction Coin World Apr 27 - PCGS security features help police nab suspects in robbery case Coin Update Apr 27 - The Most Famous Coin
of Antiquity — the Athenian Owl Coin Week Apr 27 - Gold gains but remains vulnerable after Korean leaders meet Reuters Apr 26 - The Era of Very Low Inflation and Interest Rates May Be Near an End NY Times Apr 26 - What Is Gold: Asset, Commodity, Currency Or Collectibl
of Antiquity — the Athenian Owl Coin Week Apr 27 -
Gold gains but remains vulnerable after Korean leaders meet Reuters Apr 26 - The Era
of Very Low Inflation and Interest Rates May Be Near an End NY Times Apr 26 - What Is Gold: Asset, Commodity, Currency Or Collectibl
of Very Low Inflation and Interest Rates May Be Near an End NY Times Apr 26 - What Is
Gold: Asset, Commodity, Currency Or Collectible?
After topping above $ 700 in 1981,
gold lost more than half
of its value in just over a year, followed by two sharp bear market
rallies, and then died a slow death over the next 12 years.
The
gold rally that began in December
of 2015 will differentiate itself from the 1982 - 1983 bear - market rebound if the
gold price closes above its July - 2016 peak AND the HUI closes above its August - 2016 peak.
I've seen a lot
of commentary in which the author assumes that this year's
rally in the
gold price is the first
rally in a new cyclical bull market.
Gold and Silver will
rally further till end
of this year.
The narrative
of higher rates being a headwind for
gold seems to be falling apart, as the 10 year yield in the US seems to be on an upswing, and
gold is
rallying at the same time that bond values fall.
The decrease in US real rates and the inverse relationship that this has with
gold was a contributing factor in the recent
rally to $ 1800 ``... most importantly we think US real rates will likely head significantly lower, sending
gold to $ 1800 + within a matter
of months.»
From this we inferred that
gold prices we set to stage a major
rally to a new all time high, so signalled to our subscribers to buy a great deal
of out
of the money GLD call options to benefit from this rise (more details can be viewed in our full trading records, which is published on our website).
Bloomberg writes that the current
gold rally has «cemented its status as a store
of value.»
Over the past couple
of years
gold has
rallied when the greenback has been making gains, as well as when it was weakening, therefore investors must now take note
of the inverse relationship between US real interest rates and
gold, which has been observed more consistently.
As a result
of what happened during just one
of the past twenty decades (the 1970s), most people now believe that a large rise in «price inflation» or inflation expectations is needed to bring about a major
rally in the
gold price.
Even during the 1970s, the period when the
gold price famously rocketed upward in parallel with increasing fear
of «inflation», the
gold rally was mostly about declining real interest rates and declining confidence in both monetary and fiscal governance.
I believe that we may be in the early days
of a
rally that will take
gold, silver, platinum and palladium to new all - time highs.»
GoldSeek Epic battle rages on: «Ali - Frazier» in the Crimex pits Streetwise Reports The China Rare Earth Association takes stock Industrial Minerals Lithium's state
of affairs Benchmark Mineral Intelligence
Gold stock
rally's market cap bias may surprise you SmallCapPower Commodity veteran says you just can't tell when markets will turn NAI 500 Electric car war sends lithium prices sky high Stockhouse
Also, there could be a strong
rally in the US$
gold price in the face
of neutral - bearish fundamentals.
Gold moved higher on volume that was the lowest since the beginning
of the year and this means that Friday's
rally shouldn't be taken at its face value, but instead...
That large rises in the
gold price are NOT primarily driven by increasing fear
of «inflation» is evidenced by the fact that the large multi-year
gold rallies of 2001 - 2006 and 2008 - 2011 began amidst FALLING inflation expectations.
This would suggest that, minimally, the open interest needs to drop by 60 - 70k contracts before the
gold COT structure can be considered favorable for a
rally in the price
of gold.