Analysis Topic: Commodity Markets - Metals, Softs & Oils
The analysis published under this topic are as follows.Monday, June 20, 2016
Could Central Bankers Be Gold and Silver's BIGGEST Allies? / Commodities / Gold and Silver 2016
Welcome to this week’s Market Wrap Podcast, I’m Mike Gleason.
Coming up we’ll hear from Dan Norcini, who joins us to break down the markets like no else one can. Dan discusses some of the wild moves in the markets of late, the thing he focuses on the most when trying to predict what’s ahead for gold and why he does not think the gold price is currently being manipulated. You will not want to miss an incredible interview with Dan Norcini, Trader Dan, coming up after this week’s market update.
Well on Wednesday, Federal Reserve policymakers opted to keep interest rates unchanged. The decision came as no surprise in the wake of the recent disappointment in jobs numbers.
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Monday, June 20, 2016
Will Gold’s Bullish Price Chart Outperform Gold’s 5 Bearish Indicators? / Commodities / Gold and Silver Stocks 2016
We are very closely watching the trend in the gold market, and we know that readers are doing the same based on the many thousands of views on our latest gold articles.
Earlier this week, we wrote that $1,291 is an extremely important gold price, and that at least 5 consecutive closes above that price would suggest the bull market in gold has returned. We explained why $1,291 is such an important gold price, and why June 2016 is an incredibly important month. Please re-read Gold bull or bear market: Why June 2016 is the most important month of the decade for gold.
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Monday, June 20, 2016
The Dow/Silver Ratio Signals All-Time High Silver Prices / Commodities / Gold and Silver 2016
I have written extensively about the relationship between the Dow and silver prices. One of the points I have emphasized, is the fact that Dow peaks are often followed by silver rallies.
Given the above, its natural that the Dow/Silver ratio is also an important indicator for future silver prices. One example of this, I deal with in my silver fractal analysis report:
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Sunday, June 19, 2016
Silver Sleeping On the Job / Commodities / Gold and Silver 2016
In the time of the ancient Babylonians - long before the periodic table - there were seven sacred metals: gold, silver, copper, iron, tin, lead and mercury.
In Roman and Greek Mythology, the First Age was called Golden, the Second Age Silver. Apollo, the god of truth and light, and teacher of medicine, carried a silver bow.
The hieroglyph of Isis (Egyptian moon goddess) is a crescent and images of her are usually reproduced with her standing on the Crescent. This has also become the symbol for silver – on old maps a crescent shows the location of a silver mine.
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Saturday, June 18, 2016
Gold And Silver – Insanity Is World “Norm.” Keep Stacking! / Commodities / Gold and Silver Stocks 2016
We know of no discernible line where stupid begins; for sure, it does not end. There are two primary reasons for the never-ending goal of buying and holding physical gold and silver:
1. Both are the only valid form of money. Yeah, yeah, anyone can argue sea shells, livestock, whale’s teeth, barter, any form of paper, etc, etc, etc, but none of them will fly now or even in the last century. When all is said and done, throughout the history of
mankind, gold and silver rule.
Saturday, June 18, 2016
Gold Stocks - Bull Markets that Follow Epic Bears / Commodities / Gold and Silver Stocks 2016
The gold mining stocks continue to defy any bearish price action or perceived bearish development. Pundits first warned because of the “bearish” CoT data. The commercials are always right and a big decline is coming! Then we heard the miners were too overbought and would have to correct 20%. (I thought this once or twice!) Next we heard Gold was forming a head and shoulders top. Conventional analysis is failing in trying to predict or even explain what is happening and why. A look at history helps explain why the gold mining sector has remained extremely strong and almost immune to any sustained correction. Simply put, history shows that epic bears give birth to bull markets that in their first year do not experience any significant correction or retracement.
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Friday, June 17, 2016
The Fed Giveth and the Gold Bullion Banks Taketh Away… / Commodities / Gold and Silver 2016
Precious metal expert Michael Ballanger breaks down the gold price roller coaster surrounding the Fed's decision not to raise interest rates.
Janet Yellen just blew all remaining semblances of credibility believed to be still present at the U.S. Federal Reserve Board.
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Friday, June 17, 2016
Gold Stocks Summer Breakout? / Commodities / Gold and Silver Stocks 2016
The red-hot gold stocks surged again this week in an apparent early-summer breakout. This strong buying is defying their seasonally-weak odds this time of year. Investors are flocking back to the miners as gold powers higher on also-counter-seasonal strong investment buying. Such unprecedented gold-stock strength in early June highlights how undervalued the miners remain relative to gold, but is suspect.
Summers are usually lackluster times for gold, and thus silver and their miners’ stocks. These summer doldrums exist for a couple reasons. Gold simply enjoys no recurring demand spikes driven by cultural or income-cycle factors in June and July unlike during most of the rest of the year. It’s before the Asian-harvest, Indian-wedding-season, and Christmas gold buying that flares up like clockwork in second halves.
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Friday, June 17, 2016
Silver Wildcats - And The Day Futures Died - Part 1 / Commodities / Gold and Silver 2016
From Legends to Bankers
Yes, there has always been price manipulation.
There will always be price manipulation.
From the time of Caesar, through the American Civil War and into the 20th and 21st centuries.
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Friday, June 17, 2016
How to Use the Gold-to-Silver Ratio? / Commodities / Gold and Silver 2016
We have debunked the myth that gold-to-silver ratio should revert to its “true” level around 16. The predominant range for the ratio in modern times is rather well between 40 and 80. Moreover, the notion that the gold-to-silver ratio should revert to some historical average makes no sense. The relative valuation between these two precious metals depends on market forces, like the health of the world economy and monetary demand for both metals, or industrial demand for silver. Such factors change over time. For example, gold has nowadays much higher monetary demand compared to silver than in the past, which largely explains why the average ratio in the 21st century was on average higher than earlier.
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Friday, June 17, 2016
Inflation, Deflation & Associated Trading Prospects / Commodities / Commodities Trading
Recently I have gotten wordy about the decline in ‘inflation expectations’ beginning on June 2, right on through yesterday’s update of the TIP-TLT ratio and TLT in essence, attaining their targets. The implication would be that the mini deflation whiff is coming to its limits.
As often happens at potential limit points, the market’s crosscurrents are strong. As noted yesterday, USD, gold, silver and the gold miners all did in-day reversals as items that had been risk ‘off’ got hammered. ‘What, USD and gold in lockstep? What is the meaning of this?!?’ think inflationists. See yesterday’s in-day post Strange Bedfellows.
The meaning is that these items, along with the VIX and US Treasury bonds have been plays for a risk ‘off’ market as it got the jitters over deflation. Gold miners had been, however fleetingly, rising in line with their counter-cyclical fundamentals and this is the mirror image to the reasons why I so often parrot that if you are a gold miner bull, realize that fundamentally at least, the sector is done no favors in an inflationary backdrop (price, for long stretches of time, can be something else all together).
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Friday, June 17, 2016
Gold Price Surges to Highest in Nearly Two Years On Central Bank and Brexit Haven Demand / Commodities / Gold and Silver 2016
The gold price surged to their highest level in nearly two years yesterday on BREXIT concerns and deepening concerns that central banks are slowly losing control of the financial and monetary system.
Gold subsequently fell quite sharply below the key $1,300 level but remains roughly 1% higher for the week in all currencies and is on track for its third week of gains.
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Thursday, June 16, 2016
How Will a Brexit Vote Impact Gold and Silver Prices? / Commodities / Gold and Silver 2016
The June 23 referendum on whether or not the UK should leave the EU is fast approaching. New polls show that those favoring a leave vote or “Brexit” are leading by 10 to 20 points.This has sent ripples through the markets, as a Brexit is likely to cause economic chaos in the EU, cripple European banks and lead to a Recession.
It is not that voters in the United Kingdom want nothing to do with the EU. Instead, they prefer a mutually-beneficial economic relationship, rather than an economic and political arrangement with the Europenan Union:
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Thursday, June 16, 2016
FED Leaves US Interest Rates Unchanged, Gold and Silver Bounce / Commodities / Gold and Silver 2016
Gold and silver both erased morning declines and pushed higher today after FED chair Janet Yellen announced they would leave interest rates unchanged. Policy makers gave a mixed picture of the U.S. economy, citing growth in some sectors but slowing job gains. While the median forecast of 17 policy makers remained at two quarter-point hikes this year, the number of officials who see just one move rose to six from one in the previous forecasting round in March. The market now sees less than a 50 percent chance of even one rise by year-end. I also expect a maximum of one rate hike this year from the Fed Chair Who Keeps Yellen’ Wolf.
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Thursday, June 16, 2016
Crude Oil Price - Oil Bears vs. Support Zone / Commodities / Crude Oil
Trading position (short-term; our opinion): No positions are justified from the risk/reward perspective.
On Tuesday, crude oil lost 1.36% as rising uncertainty around Brexit weighed on investors' sentiment (leaving the European Union by Britain could trigger a recession and slow demand for crude in Europe). In these circumstances, light crude declined under the short-term support line and approached the Jun lows. Will we see lower prices in the coming days?
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Wednesday, June 15, 2016
The Rush to Gold: A New Respect Is Growing / Commodities / Gold and Silver 2016
You didn't come here today for bad news. There's plenty of that everywhere you look, and even where you don't look.
So here's the good news. A new rush to gold has begun. To see where we're headed, let's first see where we've been.
Gold and silver owners in the first ten years of this new century were in for quite a ride, watching gold soar to $1,895 and silver to $49 by 2011. Even those who jumped in midway saw their paper money values zoom.
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Wednesday, June 15, 2016
Gold Bull Or Bear Market: Why June 2016 Is The Most Important Month Of The Decade / Commodities / Gold and Silver 2016
Gold is said to be in a bull market again, but we disagree with that. According to our methodology, gold will only enter a bull market if it will trade for at least 5 consecutive days above $1291. So far, that has not happened, but could happen in June of 2016.
The reason why $1291 is such a hugely important price point for gold can be derived from gold’s long term chart seen below. Basically, $1291 is both a key Fibonacci retracement level for gold’s secular uptrend (from 2001 till 2011) and the resistance line of the bear market. The combination of both has an extremely high importance.
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Wednesday, June 15, 2016
Gold Price Rally / Commodities / Gold and Silver 2016
A solid bid returned to the Gold sector this past week as the market saw a solid Gold Rally. And the GLD ETF alone added more than 15 tons of Gold. The precious metals Miners, which had fallen 10% from their recent Cycle highs, rallied to recover all of their losses, and to print new 2016 highs.
Considering that the Dollar also moved sharply higher last week (and continued to start the week) out of its own Cycle Low, the action in the Gold market is surprisingly bullish. If Gold were destined to decline for one more Daily Cycle into an Investor Cycle Low (ICL), I would have expected a rising Dollar to be the catalyst to send it lower.
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Tuesday, June 14, 2016
Is Gold-to-Silver Ratio Too High? / Commodities / Gold and Silver Stocks 2016
The gold-to-silver-ratio is an indicator that shows how many silver ounces are required to purchase an ounce of gold. The gold-to-silver ratio is one of the most important parameters in the precious metals market, as it measures the relative value of gold and silver. Therefore, it is a useful tool indicating whether gold or silver is undervalued or overvalued relative to each other. Investors can use the ratio as a timing indicator deciding when to buy gold or silver, or which metal to buy at any given time. When the ratio is low, it means that silver is overvalued relative to gold (and vice versa).
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Tuesday, June 14, 2016
Gold Stocks Ultimate Objective in a World of Monetary Transition / Commodities / Gold and Silver Stocks 2016
Gold Tenters: Here is my study of where gold stock prices are headed over the next 10 years. I regard it as rather epic. You have seen gold bugs bloviate about pie in the sky numbers, however I am trying to do legit analysis to come up with a process which justifies an actual price objective. I encourage your feedback before I publish , consider it your weekend reading- Plunger
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