Analysis Topic: Commodity Markets - Metals, Softs & Oils

The analysis published under this topic are as follows.

Friday, March 15, 2019

Gold Warning - Here Are the Stunning Implications of Plunging Gold Price - Part 1 / Commodities / Gold & Silver 2019

By: P_Radomski_CFA

Gold is turning vigorously lower. And not only gold at that. Red, red, everywhere in precious metals you look. The silent scream we wrote about yesterday brought serious repercussions. In this article, we devote extraordinary attention to the short-term picture throughout the PMs complex. Stay tuned as in the coming day(s) we’ll explain here how it affects the long-term charts and the 2012-2013 – now link in gold. That will be so much more than a great and actionable summary.

Yesterday’s Alert was quick and timely as it was important to keep our subscribers informed as gold and silver approached their resistance levels. Today, both metals are moving lower in the pre-market trading- silver erased more than 48 hours of gains and gold more than 24 hours of gains.

Let’s being with a look at the overnight performance. It’s important because it shows prices are already much lower than it might appear based on the daily charts.

Thursday, March 14, 2019

Why the Green New Deal Will Send Uranium Price Through the Roof / Commodities / Uranium

By: Stephen_McBride

Have you heard of Alexandria Ocasio-Cortez?

At 29 years old, she’s the youngest Congressperson in history.

Also known as “AOC,” Cortez is quite a sensation among young left-leaning folks. No surprise, she’s often referred to as the Democratic version of Trump. 2.4 million fans follow her on Twitter.

Like any socialist, AOC is full of “ideas.” Most of them involve taking money from one group of people and giving it to another.

She’s calling for a 70% top tax rate, for example. And free college. And giving free money to those “unwilling to work.”

Thursday, March 14, 2019

Gold in the Age of High-speed Electronic Trading / Commodities / Gold & Silver 2019

By: Michael_J_Kosares

“The best thing you can do is know how to have a balanced portfolio.” Ray Dalio, Bridgewater Associates

“The Flash Boys story put in jeopardy billions of dollars of Wall Street profits and a way of financial life.” Michael Lewis

What’s the line in that popular song. . . .  “Are you happy in this modern world?”

In an article headlined Robots conquered stock markets/Now they’re coming for bonds and currencies, Bloomberg finance reporter Lananh Nguyen tells us: “In the most liquid equity markets, more than 90 percent of trades are executed electronically, according to estimates from Greenwich Associates. That compares with 79 percent in global foreign exchange, 44 percent in U.S. Treasuries and 26 percent in U.S. corporate bonds, with the most room for growth in the latter two markets, according to [Kevin] McPartland at Greenwich.” [Link]

Wednesday, March 13, 2019

NBER’s Recession Indicators and Gold / Commodities / Gold & Silver 2019

By: Arkadiusz_Sieron

The question is not ‘if’ but ‘when’. This is what more and more analysts think about the US recession. We invite you to read our today’s article about the NBER’s recession indicators and find out whether the economic slump is really coming soon – and what it all means for the gold market.

Talks about a possible economic slump are getting louder. More and more analysts forecast the US recession by 2020. For example, according to December JP Morgan’s “real-time quant monitor”, the risk of a recession jumped to 35 percent , the highest in series history and up from 16 percent back in March 2018. Similarly, the respondents to the January CNBC Fed Survey put the probability of a recession in the next 12 months at 26 percent, the third straight increase and the highest since January 2016. And according to the February 2019 Wall Street Journal Economic Forecast Survey, the odds of recession starting within the next 12 months was about 25 percent, the highest level (with the exception of January 2019) since October 2011 and up from just 13 percent last year. In Reuters poll, the median probability of a recession in the next year rose from 20 percent in January to 25 percent in February. The outlook for 2020 is even dimmer, as the odds of recession over the next two years is 40 percent. Last but not least, the Philadelphia Fed’s Survey of Professional Forecasters puts the odds that economy will be shrinking in a year’s time at 23 percent, the highest level since 2008.

Tuesday, March 12, 2019

3 Things That Don’t Affect Price of Gold / Commodities / Gold & Silver 2019

By: Jordan_Roy_Byrne

It’s important to understand Gold’s fundamentals as it will help us confirm a new bull market.

To this point, Gold’s rallies have failed to make higher highs and higher lows because, although there has been improvement in fundamentals, the fundamentals have not turned bullish yet.

The technical trigger will be Gold and gold stock outperformance of the stock market which will likely precede the fundamental catalyst of Fed rate cuts. The start of rate cuts will indicate declining real interest rates which is the key driver of bull markets in Gold.

With that said, here are some things that do not impact the price of Gold.

Tuesday, March 12, 2019

Gold Up-to-Date' COT Report: A Maddening Déjà Vu / Commodities / Gold & Silver 2019

By: The_Gold_Report

Precious metals expert discusses recent movements in the markets. In life, there are a distant events from one's past that embed themselves in one's memory banks in a manner and forcefulness that is directly related to their personal or historical importance. The birth of one's first child, one's first love affair or an athletic achievement fall into the "personal" category; the end of WWII, the first lunar landing or the assassination of JFK are examples of "historical" events. These events in one's lives are so crystallized in their vividness that one is many times able to recall sounds and scents from those exact points in time. Stated another way, how many times has a person had a certain song come on the radio and been memory-jogged back 20 or 30 years? In my case, the scent of hot dogs and popcorn bring to life hockey arenas and dressing rooms while the song "The Night They Drove Ol' Dixie Down" brings me immediately to the old Hamilton Mountain Arena where the Dixie Beehives won the Ontario Junior "B" championship in 1970. Fast-forward to 2019 and there is yet one more memory-etching that is transpiring: the COT report.

Tuesday, March 12, 2019

Palladium Blowup Could Expose Scam of Gold & Silver Futures / Commodities / Palladium

By: MoneyMetals

Welcome to this week’s Market Wrap Podcast, I’m Mike Gleason.

Coming up we’ll hear a tremendous interview with Craig Hemke of the TF Metals Report. Craig weighs in again and offers a concise and clear explanation on what’s been happening in the broken and rigged silver futures markets. And also tells us why he sees 2019 being a similar setup to what we saw in gold and silver back in 2010 and 2011 when the metals went on an historic run. Don’t miss a fantastic interview with Craig Hemke, coming up after this week’s market update.

Markets got roiled this week on some downbeat economic reports and a surge in the U.S. dollar.

The Dollar Index broke out to a 21-month high on Thursday after the European Central Bank came out swinging with more stimulus measures. The ECB indicated it intends to leave ultra-low interest rates in place at least through early 2020. That coupled with bleak new forecasts for European economic growth helped drag down the euro and give life to the dollar on foreign exchange markets.

Monday, March 11, 2019

Gold Price Chart Feast / Commodities / Gold & Silver 2019

By: readtheticker

If the central economic planners (CEP) lose control and the fiat monetary balance is broken, where do you hide! In the most recent years the pendulum as held firm on the side of the CEPs and central bank put (Greenspan Put, Bernanke Put, Yellen Put, Powell Put [just]) was (and is) a real thing. Now in 2019, after being sold the story the easy monetary policy can end and return to normal. The current Fed Chairman Powell even suggested this would see the US 10 yr bond near 4% while they sold down the $4T FED balance sheet at $5OBN a month, while suggesting the US economy would not even notice. 

Sunday, March 10, 2019

Are You Ready for the Next Big Move in Gold? / Commodities / Gold & Silver 2019

By: Chris_Vermeulen

If you were following our research, you would have known that Gold had reached a short-term peak in February. On Feb 19th the day gold posted a huge gain for the day and everyone was bullish and feeling like million bucks I did a radio show with HoweStreet’s Jim Goddard and said that strong day and overly positive sentiment was the going to be the top, which it was – Listen Here.

We had been advising our members that Gold would likely retrace below $1300 possibly beeper by and mid-April.  Our advanced Adaptive Learning price modeling systems had warned us that Gold would likely setup a price rotation before the next move higher back in January 2019.  This is what you need to know about the next 4+ weeks in Gold.

Sunday, March 10, 2019

Draghi Won’t Send a Rate Hike Gift to the Gold Bulls / Commodities / Gold & Silver 2019

By: Arkadiusz_Sieron

The ECB eased its monetary stance. It launched another round of cheap loans to banks and promised to keep interest rates unchanged this year. It means that Draghi will not hike during his presidency. What does it all mean for the gold market?

ECB Unveils New Monetary Stimulus in Response to Slowdown

The ECB left its interest rates unchanged. But it pushed out the timing of its first post-crisis rate hike until 2020 at the earliest. As we can read in the monetary policy statement.

The Governing Council now expects the key ECB interest rates to remain at their present levels at least through the end of 2019, and in any case for as long as necessary to ensure the continued sustained convergence of inflation to levels that are below, but close to, 2% over the medium term. 

Saturday, March 09, 2019

Should We Rethink Nuclear Power? / Commodities / Nuclear Power

By: OilPrice_Com

While it seems to fly in the face of everything we believe and have been taught about nuclear power, it may actually be the safest form of power production that we have. Ironically, the immense potency of the power of splitting an atom is simultaneously what makes nuclear weapons so dangerous as well as what makes nuclear power so safe.

Saturday, March 09, 2019

Palladium Hits Record High / Commodities / Palladium

By: Arkadiusz_Sieron

Gold is no longer the most valuable precious metal! Palladium dethroned it! We invite you, thus, to read our today’s article about that metal and find out what is the fundamental outlook for the palladium market.

We have a new record! Please take a look at the chart below, which displays the palladium prices since the beginning of the year. As one can see, the price of palladium soared in the first two months more than 20 percent, jumping above $1,500!

Saturday, March 09, 2019

Strong Historical Probability of Natural Gas Long Trades Setting Up / Commodities / Natural Gas

By: Chris_Vermeulen

Would you believe that March and April, historically, shows a 2 to 1 statistical probability of NG moving higher.  Each of these months shows, historically, that NG has a strong potential for at least a $1.00 upside price move in both March and April.  Only 1/3 of the historically testing time (23 years) did the price of NG actually decrease.

How do we know this?  We’ve built proprietary price modeling and data modeling solutions that allow us to isolate and verify this data.  This data was tested on a Monthly price basis for the statistics we’ve provided, above.  When we run this same test on Weekly data, the results continue to support our conclusions.

Friday, March 08, 2019

Gold and Silver Precious Metals Pot Pourri / Commodities / Gold & Silver 2019

By: Rambus_Chartology

I know it may have come as a shock to some of you on why I raised some capital by selling a few PM stocks today. Whenever you see a false breakout of any chart pattern and the price action trades below the bottom rail of the original pattern that can setup a bearish situation. It’s like a head fake. The stock forms what looks like a great breakout and maybe even accompanied by a breakout gap. Everything looks fine. Then you get the backtest to confirm the breakout. Sometimes we can see several days of backtesting waiting for the breakout move to begin.

The first sign of trouble is when you see the price action trade below the breakout point or below the top rail in this case the bullish rising wedge. Many times the trade can still be saved if the bottom rail of the rising wedge ends up holding support. Once the bottom rail gives way then red flags start flying that something is amise. Many times when you see a false breakout of a chart pattern you can see a strong move in the opposite direction. Again, its like a head fake that gets you moving in the wrong direction before the real move takes place.

Lets start by looking at a daily chart for AU which built out a very nice looking rising wedge formation complete with a breakout gap above the top rail. AU was one of the leaders and it looked like it was showing the way higher for the PM stocks but after the reversal bar at the top of the chart AU declined back into the rising wedge negating the breakout. All was not lost yet as the bottom rail of the falling wedge could still provide support and save the pattern. Once the bottom rail was lost that put me on high alert to watch the price action very carefully for more deterioration. Monday morning AU opened with a downside gap and today the price action closed below the 50 day ema which strongly suggested to me it was time to get out of this trade.

Friday, March 08, 2019

Gold and the Political Theater: Is The Tail Wagging the Dog? / Commodities / Gold & Silver 2019

By: Arkadiusz_Sieron

As the old saying goes, politics is a show business for ugly people. Fair enough, but what does it have to do with gold? Let’s jump right in and find out!

There Is No Trade War

Economic reports are rarely fun. But when we read the latest US trade report, we could not help but laugh. It turns out that the US goods and services deficit was $59.8 billion in December, up $9.5 billion, or almost 19 percent, from $50.3 billion in November. For 2018, the goods and services deficit was $621.0 billion, an increase of $68.8 billion or 12.5 percent, from 2017. In other words, despite Trump’s “America First” policies and trade wars, including tariffs aimed at shrinking the trade deficit, the US trade gap has widened. Actually, it surged to a 10-year high last year, as one can see in the chart below. As if that was not enough, the shortfall with China hit a record peak! Isn’t that funny?

Wednesday, March 06, 2019

Gold and Gold Stocks Stop Short of Bull Market, Again / Commodities / Gold & Silver 2019

By: Jordan_Roy_Byrne

The recent rally showed quite a bit of promise.

Gold stocks surged past their long-term moving averages while breadth indicators surpassed all prior bear market peaks (excluding 2016). 71% of the HUI and 81% of GDXJ closed above the 200-day moving average.

GDX and GDXJ looked to be on their way to $25 and $37, with Gold approaching $1360/oz and those breadth figures on the way to hitting 90%.

However, the stock market rebound pushed past its initial resistance and precious metals reversed course yet again before hitting those targets.

Other than 1985-1987 there has never been a bull market in precious metals without their simultaneous outperformance of the stock market.

Tuesday, March 05, 2019

Warren Buffett’s Confusion & Disorientation about Gold / Commodities / Gold & Silver 2019

By: MoneyMetals

Warren Buffett’s famed annual letter to Berkshire Hathaway shareholders landed in the mail last week. Buffett has built a vast fortune investing in the shares of publicly traded companies. He has long been critical of gold. His most recent letter takes another swipe at the precious metal and implores readers to buy stocks instead.

Before his fans start dumping gold and calling their stock brokers, we thought it would be worth examining Buffett’s argument.

Buffett got started investing in 1942. He bought $114.75 worth of shares and says had that amount been invested in a no-fee S&P 500 Index Fund, the current value would be $606,811.

Tuesday, March 05, 2019

Gold’s Upcoming Plunge: The Powerful Analogies, Confirmations and Reasoning / Commodities / Gold & Silver 2019

By: P_Radomski_CFA

Gold, silver and mining stocks plunged on Friday and the yellow metal closed the week below the $1,300 barrier. The gold-silver ratio soared once again and it all happened in tune with our expectations, and despite the recent dovish comments from the Fed. And – believe it or not – we have something much more important and exciting about the precious metals sector to tell you today. 

Remember the analogy between 2012-2013 decline and the current situation in gold, silver, and mining stocks? We featured it in the previous year and the entire sector appeared to be declining in tune with it. The last few months of 2018, however, along with the initial part of this year, seemed to have entirely invalidated this analogy. But did they?

Over the weekend we dedicated a lot of time to analysis of the long-term charts and as we’re going to show you, it turns out that the analogy between 2012-2013 plunge and the current situation is definitely in place, but we had been earlier in the analogy than we originally thought. What we thought to be a decline similar to the late-2012 slide, was actually the smoothened version of the early-2012 decline. The most recent upswing is just like the mid-2012 upswing. And it seems to have ended.

Monday, March 04, 2019

Gerald Celente Reveals Triggers for World Economic Blowup, Gold Breakout / Commodities / Gold & Silver 2019

By: MoneyMetals

Mike Gleason: It is my privilege now to welcome in Gerald Celente, publisher of the renowned Trends Journal. Mr. Celente is perhaps most well-known trends forecaster in the world and it's always a joy to speak with him.

Mr. Celente, thanks for the time again today and welcome back.

Gerald Celente: Oh, thanks for having me on, Mike.

Mike Gleason: Well, Gerald, the Trends Journal is forecasting Economic 9/11 as one of the big trends for 2019. There are plenty of indicators which just support your thesis for a major slowdown. Debt levels – both public and private – have exploded, China is slowing down and all the stimulus in Europe has failed to generate results there. Higher interest rates are hurting, everything from real estate to auto sales, et cetera. But none of this is reflected in the stock markets, which are roaring higher. Once again, it looks like the Fed is up to its old tricks, promising to stop the rate hikes they had planned and end the program for selling bonds. The constant intervention of the Fed has always been one of the major wildcards when trying to predict where things are headed in recent years. What do you think? Can the central bankers kick the can one more time to avoid a recession, or are they finally going to lose control in the months ahead?

Saturday, March 02, 2019

Is the Worst Behind for Crude Oil Bears? / Commodities / Crude Oil

By: Nadia_Simmons

Crude oil made yesterday another hesitant move higher. Also yesterday, we mentioned here the saying regarding gravity. Sometimes, it takes patience for the underlying forces to win out. Or, doesn't the oil market rather remind you more of a coiled spring actually? Accordingly, what is the position favored most by the odds right now?