Analysis Topic: Commodity Markets - Metals, Softs & Oils
The analysis published under this topic are as follows.Thursday, November 03, 2016
Will London Gold Market Self Destruct? Ripe For China Take-over? / Commodities / Gold and Silver 2016
- London Gold Market has been unchallenged for nearly 100 years
- So opaque that quotes of its $5 trillion size are estimates
- Five new offerings are set to appear in the market in the next six months
- Increased fragmentation set to reduce liquidity
- A share of gold price discovery is ripe to be taken by China
- Disruption in the London Gold Market gives opportunity to the East to take more control of the market.
Thursday, November 03, 2016
The Chartology of Gold / Commodities / Gold and Silver 2016
Tonight I would like to look at some gold charts as it has been showing some relative strength since October. We can even go back to February of this year which shows a possible big diamond consolidation pattern building out. Regardless of whatever trading discipline one uses the last nine months of price action has been difficult at best to read.
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Thursday, November 03, 2016
Gold: It’s All About the US Dollar / Commodities / Gold and Silver 2016
Kelsey Williams writes: The relationship between gold and the US dollar is similar to that between bonds and interest rates. Gold and the US dollar move inversely. So do bonds and interest rates.
If you own bonds, then you know that if interest rates are rising, the value of your bonds is declining. And, conversely, if interest rates are declining, the value of your bonds is rising. One does not ’cause’ the other. Either result is the actual inverse of the other.
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Wednesday, November 02, 2016
“Trump Might Actually Win” - This Is What Gold and Silver Do In A Political Crisis / Commodities / Gold and Silver 2016
A week ago it looked like the US government was destined to end up firmly – maybe even more firmly — in the hands of the banks, public sector unions and defense contractors. Trump was imploding and the markets were basking in the prospect of never-ending liquidity from a re-energized Fed. And safe-haven assets like gold were being dumped in favor of growth stocks and the like.
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Wednesday, November 02, 2016
Diwali, Gold and India – Spiritual, Religious Gold Buying Over? / Commodities / Gold and Silver 2016
I live in Dubai where Diwali has been the focus for many this weekend. With Diwali comes not just fantastic light displays and celebrations but also huge adverts for Hindus to buy gold for their loved ones in India and throughout the world.
Buying gold at Diwali is a religious or spiritual act and it is considered auspicious and thought to bring good fortune and prosperity.
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Wednesday, November 02, 2016
Silver Price Is Looking Really Bullish In Dollars, Euros and Rands / Commodities / Gold and Silver 2016
Silver in South African Rand
The South African rand is often a leading indicator for where silver (in dollars) is going, as previously explained. Furthermore, the chart of the silver price in rands can often provide very clear signals or patterns of what might happen to price.
Currently, the silver price in rands provides the clearest signal (in my opinion) that silver is going to go very high in price. Below is a silver chart in South African rands:
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Wednesday, November 02, 2016
Can Oil Markets Survive An OPEC Implosion? / Commodities / Crude Oil
A technical meeting that was supposed to iron out some wrinkles for a deal to cut oil production ended in acrimony over the weekend, and OPEC's effort at coordination could be at yet another impasse.
Following the Algiers agreement at the end of September, a tentative deal that called for a collective reduction in oil output in the range of 200,000 to 700,000 barrels per day, OPEC scheduled a meeting on October 28-29 in Vienna to put some meat on the bones of the pact so that it could be officially sealed at the end of November.
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Tuesday, November 01, 2016
Precious Metals Stocks May Be Poised for a Major Upswing / Commodities / Gold and Silver Stocks 2016
Technical analyst Clive Maund outlines why he believes the correction in gold and precious metals stocks is coming to an end.
It now looks like gold's correction is done and its intermediate base pattern is completing. If so, then we are at an excellent entry point for many better precious metals (PM) stocks, which have been savagely beaten down over the past several months—a necessary correction following their outsized run-up earlier in the year.
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Tuesday, November 01, 2016
Gold, Rate Hikes and the US Presidential Election / Commodities / Gold and Silver 2016
The next ten days or so will present gold with two major events both of which could impact on gold in different ways depending on their particular outcome and they are as follows:1. Possible interest rate hikes in the US as the FOMC meet
2. The US Presidential Election
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Tuesday, November 01, 2016
Silver Charts Indicate Now May Be an Excellent Entry Point / Commodities / Gold and Silver 2016
Calling an end to the correction in silver is tricky, but technical analyst Clive Maund sees an intermediate base forming for silver stocks, a "classic buy spot."
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Monday, October 31, 2016
This Past Week in Gold Price / Commodities / Gold and Silver 2016
Technical analyst Jack Chan charts the last week's movements in the gold and silver markets.
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Saturday, October 29, 2016
A Loaf of Bread, A Gallon of Gas, An Ounce of Gold / Commodities / Gold and Silver 2016
Kelsey Williams writes: The average cost for a loaf of bread in 1930 was ten cents ($.10). The average cost for a gallon of gasoline was also ten cents. With gold priced in U.S. dollars at $20.00 to the ounce, you could at that time purchase two hundred loaves of bread or two hundred gallons of gasoline (or some combination thereof). Twenty dollars of paper currency OR one ounce of gold valued at $20.00, usually in the form of a U.S. Double Eagle ($20.00 gold coin, legal tender), were equal in “purchasing power”.
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Saturday, October 29, 2016
Negative Divergence in Gold Stocks Bodes for Lower Prices / Commodities / Gold and Silver Stocks 2016
You have heard it before from us and probably elsewhere. The miners lead Gold. We have seen this every major turn dating back 16 years and it can also be the case with respect to short and medium term trends. While the precious metals sector has rallied over the past few weeks, the rally has been weak and the gold stocks relative weakness in recent days bodes negatively for the sector.
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Friday, October 28, 2016
Gold Stocks Winter Rally / Commodities / Gold and Silver Stocks 2016
The gold miners’ stocks have certainly had a wild ride this year. After initially skyrocketing out of deep secular lows into a mighty new bull market, they recently suffered a massive correction climaxing in an extreme plummet. This coincided with gold stocks’ major seasonal low in October. That heralds their strongest seasonal rally of the year heading into and through winter, a very bullish omen for coming months.
Gold-stock performance is highly seasonal, which certainly sounds odd. The gold miners produce and sell their metal at relatively-constant rates year-round, so the temporal journey through calendar months should be irrelevant. Based on these miners’ revenues, there’s no reason investors should favor them more at certain times of the year than others. Yet history proves that’s exactly what happens in this sector.
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Friday, October 28, 2016
What's Next for Crude Oil; Higher Prices or Crash / Commodities / Crude Oil
"If the doors of perception were cleansed everything would appear to man as it is, infinite. For man has closed himself up, till he sees all things thru chinks of his cavern." ~ William Blake
2016 started with all the Drs of Gloom stating that oil was heading lower and many even predicted that it would trade down to $10.00. It was kind of interesting to watch this circus as there is a saying the cure for low prices is usually low prices. It would have made sense to take a firm stance against oil when it was trading above $100, but not when it was trading in the $30.00 ranges. These same experts were busy proclaiming higher prices when oil was trading north of $100.00. Only when oil was close to putting in a bottom, did they muster the courage to issue even lower prices; they would have been well served by simply keeping quiet. Experts were all trying to outdo each other; each one is releasing lower prices and a gloomier scenario. Here are some examples of the stories being put out at the time:
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Friday, October 28, 2016
Jim Rickards: Trump “Will Probably Win” and Gold “May Rise $100” Overnight / Commodities / Gold and Silver 2016
The US election is just two weeks away on November 8th, and one of Hillary Clinton’s most vocal critics on the business side is finance commentator and monetary expert Jim Rickards. Jim is in Sydney this week, armed with his latest book, hot off the press entitled ‘The Road to Ruin – The Global Elites’ Secret Plan for the Next Financial Crisis’ and gave an interesting television interview to ‘The Business’ on ABC Australia.
Rickards says that Trump “will probably win” and, if he does, stock markets will crash 10% and gold will rise $100 over night.
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Friday, October 28, 2016
How Could Shift in Monetary Regime Affect the Gold Market? / Commodities / Gold and Silver 2016
Some economists, including San Francisco Fed President John Williams, have recently suggested raising the FOMC’s 2-percent inflation objective or implementing monetary policy through alternative frameworks, such as price-level or nominal GDP targeting. It is not a mere academic debate, as the Bank of Japan increased its inflation target in a sense, as it committed “itself to expanding the monetary base until the year-on-year rate of increase in the observed consumer price index (CPI) exceeds the price stability target of two percent and stays above the target in a stable manner”. What are these frameworks and how could they, if implemented in the U.S., affect the gold market?
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Friday, October 28, 2016
How Big Is Your Gold and Silver Picture? / Commodities / Gold and Silver 2016
Whether you surf the Internet for information about the precious metals and mining stocks or receive newsletters by snail mail, you're exposed to predictions by all and sundry:
- How high will prices go?
- How long will it take?
- Will they remain elevated if/when they reach record nominal and/or inflation-adjusted highs?
Friday, October 28, 2016
Gold and Silver Connecting the Dots / Commodities / Gold and Silver 2016
The USD Index confirmed the breakout above March highs, silver outperformed temporarily, miners underperformed and... Despite this bearish combination, precious metals didn't decline. Why wasn't that the case? Will they still slide or will they rally from here? Let's take a closer look at the charts and find out (charts courtesy of http://stockcharts.com).
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Thursday, October 27, 2016
Gold Chart of the Day / Commodities / Gold and Silver 2016
The first retest of the 200 DMA is the second best buying opportunity in a new bull market.
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