Analysis Topic: Commodity Markets - Metals, Softs & Oils
The analysis published under this topic are as follows.
Wednesday, August 21, 2019
Gold and the Cracks in the U.S., Japan and Germany’s Economic Data / Commodities / Gold & Silver 2019
By: Arkadiusz_Sieron
Talk of a synchronized world - all three economic superpowers are in a recession! The U.S. suffers from industrial recession, Japan from export recession, while Germany may fall into a broad economic recession. Will the gold market warm up to these news?
Recent U.S. Data Shows Industrial Recession
The recent inversion of the yield curve has sparked recessionary fears. Some of the newest pieces of the U.S. economic data confirm the gloomy outlook. For example, the industrial production fell 0.2 percent in July, the second drop in the past four months, according to the Federal Reserve, as one can see in the chart below. Although the scale of slump might be overstated due to the Hurricane Barry hitting oil production in the Gulf of Mexico, the industrial sector remains in a technical recession.
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Wednesday, August 21, 2019
The Gold Rush of 2019 / Commodities / Gold & Silver 2019
By: Rodney_Johnson
One side of my family has held a reunion every few years for more than four decades. It’s a big, raucous event filled with lots of food, many half-true stories about the past, and copious amounts of alcohol.In other words, it’s a not-to-be-missed event.
Hosting responsibilities transferred from one sibling at the oldest generation to the next, and then moved down a level. My relatives are spread across the nation. So, we’ve held the reunion in Minnesota, Wisconsin, the Upper Peninsula of Michigan, California, Texas, and Florida. Last week we gathered in Colorado, descending on Mt. Princeton Hot Springs Resort just outside of Salida.
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Tuesday, August 20, 2019
The Case for Gold Keeps Getting Stronger As Negative Interest Rates Spread / Commodities / Gold & Silver 2019
By: MoneyMetals
The world has truly entered uncharted waters with negative interest rates spreading so far and wide.
Frank Holmes, CEO of US Global Investors, recently noted that a whopping 25% of all bonds sold globally now carry a negative yield. “Investors” are even buying some “junk” rated bonds which will repay the bearer less than purchase price upon maturity.
Now European banks, who have been absorbing the European Central Bank’s 0.4% charge to hold deposits, are throwing in the towel and getting ready to pass those charges on to clients.
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Monday, August 19, 2019
Is This Time Different? Predictive Power of the Yield Curve and Gold / Commodities / Gold & Silver 2019
By: Arkadiusz_Sieron
This time is different. This is what the experts say. The inversion of the yield curve did a great job in predicting recessions in the past, but the current inversion is not like the previous. The predictive power of the yield curve has weakened, so it does not signal the recession. This is what the pundits claim. We invite you to read our today’s article and find out whether the experts are right and what does it mean for the gold market.
This time is different. This is what the experts say. The inversion of the yield curve did a great job in predicting recessions in the past, but the current inversion is not like the previous. The predictive power of the yield curve has weakened, so it does not signal the recession. This is what the pundits claim. Are they right?
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Monday, August 19, 2019
Gold Set to Correct but Internals Remain Bullish / Commodities / Gold & Silver 2019
By: Jordan_Roy_Byrne
Last week we wrote that near-term risk in precious metals (Gold and GDX especially) was rising and a correction could begin soon.
As Gold nearly reached major resistance at $1550/oz, the miners already began to correct. That negative divergence is an ominous signal for the sector in the short term.
However, the good news is, at least at present, Gold remains very strong in real and intermarket terms.
The first example of that is Gold’s strength against foreign currencies (Gold/FC). Gold/FC made a new all time high a few weeks ago and is now 4% above the previous all time high.
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Monday, August 19, 2019
The Number One Gold Stock Of 2019 / Commodities / Gold & Silver 2019
By: OilPrice_Com
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Friday, August 16, 2019
Gold & Silver Stand Strong amid Stock Volatility & Falling Rates / Commodities / Gold & Silver 2019
By: MoneyMetals
Welcome to this week’s Market Wrap Podcast, I’m Mike Gleason.
Coming up we dive into China with one of the foremost experts on the subject Gordon Chang. Gordon shares his thoughts on the U.S.-China trade war and why he believes it’s not likely to end anytime soon, talks about the pending economic catastrophe he sees in China and the effects it’s going to have on the global economy and, more importantly, for metals investors. You will not want to miss this incredibly in depth and fascinating conversation with the man nearly everyone goes to these days for an explanation of what’s really happening in China, Gordon Chang, coming up after this week’s market update.
Gold and silver prices have been on the move again this week. The metals continue to serve as a safe haven from trade wars, currency wars, plunging bond yields, and stock market volatility.
For the week, gold prices are up another 0.7% to bring spot prices to $1,509 per ounce. It’s down a bit today and is looking to hang on for a weekly close above the technically important $1,500 level. With a few hours here left in the trading week we’ll see if it can do that. Silver is higher by 0.6% since last Friday’s close to trade at $17.15. Platinum isn’t faring too well, down $20 or 2.3% to come in at $845. But its sister metal palladium shows a weekly gain of 1.5% and currently trades at $1,450 an ounce.
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Friday, August 16, 2019
Gold Mining Stocks Q2’19 Fundamentals / Commodities / Gold & Silver 2019
By: Zeal_LLC
The major gold miners’ stocks have soared in recent months, fueled by gold’s decisive breakout to new bull-market highs. Nothing motivates traders like performance, so interest in this long-neglected sector has exploded. While gold stocks’ technicals and sentiment have greatly strengthened, their just-reported Q2’19 results reveal whether their underlying fundamentals support their powerful surge and further upside.
Four times a year publicly-traded companies release treasure troves of valuable information in the form of quarterly reports. Required by the US Securities and Exchange Commission, these 10-Qs and 10-Ks contain the best fundamental data available to traders. They dispel all the sentiment distortions inevitably surrounding prevailing stock-price levels, revealing corporations’ underlying hard fundamental realities.
The definitive list of major gold-mining stocks to analyze comes from the world’s most-popular gold-stock investment vehicle, the GDX VanEck Vectors Gold Miners ETF. Launched way back in May 2006, it has an insurmountable first-mover lead. GDX’s net assets running $11.8b this week were a staggering 44.0x larger than the next-biggest 1x-long major-gold-miners ETF! GDX is effectively this sector’s blue-chip index.
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Friday, August 16, 2019
Precious Metals Gone Wild! Reaching Initial Targets – Now What’s Next? / Commodities / Gold & Silver 2019
By: Chris_Vermeulen
We have heard from so many of our followers and members regarding our precious metals calls and research articles. Additionally, many of our members and followers have recently asked us about our August 19 breakdown prediction for the US/Global markets. In this research post, we’ll highlight some of our expectations for the precious metals and how that relates to the potential August 19 breakdown expectations.
October 5 ADL predictive modeling forecast chart
Our incredible October 5 ADL predictive modeling chart, below, highlights just how powerful some of our proprietary price modeling tools really are. Imagine having the ability to look 10+ months into the future to be able to attempt to understand exactly what price may attempt to do and to be able to plan and prepare for these moves well ahead of the “setup”. So far, our analysis of the precious metals has been spot on and we’ll continue to try to update our members and followers as this movement continues.
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Thursday, August 15, 2019
Is Widening Yield Curve Inversion Lifting Gold Prices Up? / Commodities / Gold & Silver 2019
By: Arkadiusz_Sieron
The yield curve inversion just got more pronounced. Not only the spread between 10-year and 3-month Treasuries, now also the spread between 10-year and 2-year turned negative. That sends a warning signal about the state of the real economy. About a recession on the horizon. Some might argue that the yield curve’s predictive power has diminished with all the unorthodox monetary policies since the Great Recession. Yet, it’s a valid reason to worry – how does gold welcome this message?
Thursday, August 15, 2019
GOLD BULL RUN TREND ANALYSIS / Commodities / Gold & Silver 2019
By: Nadeem_Walayat
This is part 2/2 of my Gold price forecast update Gold Price Breakout - Trend Forecast 2019 July Update.
So the gold price has broken out of it's long-term trading range of $1370 to $1150. Which means $1370 should now act as a floor under the Gold price, else it's back into the range for several more years! Next resistance is at just above $1500 and then $1800 which is my long-term target for the Gold price as of December 2016.
Therefore, as I stated in my May analysis, as the Gold price has now overcome resistance of $1350 to $1370 then the Gold price should be propelled higher towards a target of between $1500 to $1530.
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Thursday, August 15, 2019
It's Time to Get Serious about Silver / Commodities / Gold & Silver 2019
By: MoneyMetals
The World Silver Survey 2019 Review, the institute’s annual World Silver Survey said that global silver demand hit a three-year high in 2018, surpassing more than one billion ounces, an increase of 4% from 2017.
At the same time, global silver mine production fell for the third straight year, dropping 2% in 2018 to 855.7 million ounces.
The top 10 silver producing countries are: Peru, Bolivia, Australia, Argentina, Mexico, Chile, Poland, China, Russia and Guatemala.
And get this... in every one of these countries, silver production has been falling for the last 4 consecutive years!
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Wednesday, August 14, 2019
Fool’s Silver: Why Most “Silver Miners” Don’t Live Up to Their Name / Commodities / Gold & Silver 2019
By: MoneyMetals
If you buy shares in a silver mining company, you will have to assume additional market risks compared to ownership of silver bullion. You may wish to do so in order to potentially gain leveraged exposure to silver prices.
What you may not realize, however, is that most of the publicly traded “silver” stocks out there are primarily in the business of mining other metals – sometimes gold, often copper, zinc, lead, and other base metals.
Consider Pan American Silver (NYSE:PAAS), a $3.6 billion company that makes up the largest weighting (13.5%) in the Global X Silver Miners ETF (NYSE:SIL).
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Wednesday, August 14, 2019
Gold Near Term Risk is Increasing / Commodities / Gold & Silver 2019
By: Jordan_Roy_Byrne
Last week was another strong one for the precious metals sector.
Gold gained a whopping $51/oz or 3.5%. The gold stocks (GDX, GDXJ) advanced by roughly 6%. Silver gained 4%.
Momentum in the sector began to build once Gold surpassed resistance at $1420-$1425/oz. We had noted the lack of resistance from $1425 to $1525-$1550/oz.
Gold has not reached $1550/oz yet but as it inches higher, some technical and sentiment indicators are urging caution.
Gold’s net speculative position of 54% is very close to the peaks of 55% to 60% seen since 2000. It’s possible the commercial hedgers will start covering at somepoint like they did in 2006 and 2010 but for now we have to assume they won’t if $1550/oz holds as resistance.
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Wednesday, August 14, 2019
Gold Bulls Must Love the Hong Kong Protests / Commodities / Gold & Silver 2019
By: Arkadiusz_Sieron
It appears that the two steps forward, one step backwards approach of mainland China isn’t working as Hong Kong citizens are protesting again. The increasingly violent protests have plunged Chinese-ruled Hong Kong into its most serious crisis in decades, and the situation appears to be getting worse every week. What does it imply for the gold market?
Hong Kongers Protest
On Monday, Hong Kong’s Airport Authority canceled flights as demonstrators poured into its main terminal. What is going on in Hong Kong? The protests began over plans that would have allowed extradition from Hong Kong to mainland China. Although the bill was suspended, the protests continue, as people demand democratic reforms. The problem is that although Hong Kong – as a former British colony – still enjoys freedoms not seen in mainland China, they are on the decline. The protesters say that mainland China is meddling in Hong Kong, citing examples such as legal rulings that have disqualified pro-democracy legislators.
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Wednesday, August 14, 2019
Gold, Markets and Invasive Species / Commodities / Gold & Silver 2019
By: The_Gold_Report
Sector expert Michael Ballanger draws connections between nefarious non-native species in the natural world and in the world markets. Invasive species: Any kind of living organism—an amphibian (like the cane toad), plant, insect, fish, fungus, bacteria, or even an organism's seeds or eggs—that is not native to an ecosystem and causes harm. They can harm the environment, the economy, or even human health.
In the 1830s, a creature called the "sea lamprey" was first detected in Lake Ontario after it was able to migrate from the Finger Lakes of upstate New York by way of the Erie Canal, which was constructed in 1825. In the 1800s the Great Lakes fishing industry harvested over 100 million pounds of fish for both domestic consumption and export before this incredibly creepy creature laid virtual waste to the fishery stock. Within one hundred years, the harvest had dwindled to approximately one-third of its peak as the absence of natural predators allowed it to feast on the Great Lakes fisheries with reckless abandon and unopposed execution.
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Tuesday, August 13, 2019
This is the real move in gold and silver… it’s going to be multiyear / Commodities / Gold & Silver 2019
By: MoneyMetals
Welcome to this week’s Market Wrap Podcast, I’m Mike Gleason.
Coming up David Morgan of The Morgan Report joins me to break down the recent move in the metals, explains why he believes the move is a result of something no one is talking about – and he also gives us some key levels for silver, as it looks to gather strength from here. So don’t miss another must-hear conversation with David Morgan, coming up after this week’s market update.
What a wild week it’s been for investors.
The threat of global trade wars and currency wars sparked big swings across all major asset classes. Bond yields dove toward historic lows. Stocks plunged earlier in the week before rebounding sharply by Thursday. And precious metals rode a huge safe-haven wave higher.
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Monday, August 12, 2019
Will Gold Continue to Outperform Silver? / Commodities / Gold & Silver 2019
By: Submissions
Gold Strength Dominates the MarketsThe recent rally in Gold has been hard to ignore. The yellow metal is certainly showing a lot of strength. But unlike prior rallies, the current one stands out in several ways.
For starters, Gold is trading at record levels against four of the seven major currencies. Looking at just spot Gold against the dollar does not represent just how strong Gold is at the moment. But not only that, Gold is rallying without the common correlations that we have seen in the past. Specifically, equities are not really under a whole lot of pressure at the moment. Neither is the dollar. In fact, the greenback just broke to a fresh high in the past few weeks.
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Monday, August 12, 2019
All Eyes On Copper / Commodities / Copper
By: Chris_Vermeulen
Copper is a fairly strong measure of the strength and capacity of the global economy and global manufacturing. Right now, Copper has been under quite a bit of pricing pressure and has fallen from levels above $4.50 (near 2011) to levels near $2.55. Most recently, Copper has rotated higher to levels near $3.25 after President Trump was elected on November 2016, yet has recently fallen as trade and global economic concerns become more intense.
This should be viewed as a strong warning sign that institutional traders and investors are very concerned that the future economic and manufacturing activities throughout the world are continuing to contract. Copper is used in various forms throughout all types of manufacturing and consumer products, such as computers, building & infrastructure, electronics, chemical & medical use as well as automobile and aircraft manufacturing. It makes sense that copper prices would be a leading indicator for much of the global economy and relate to economic output and capacity.
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Monday, August 12, 2019
History of Yield Curve Inversions and Gold / Commodities / Gold & Silver 2019
By: Arkadiusz_Sieron
The inversion of the yield curve is of crucial importance as it has historically been one of the most reliable recessionary gauges. Consequently, we invite you to read our today’s article about the history of the yield curve inversions and find out whether the recession is coming, and what does it mean for the gold market.
We keep our promises. In the previous edition of the Market Overview, we promised our Readers to “dig even deeper into the predictive power of the yield curve”. As a refresher, please take a look at the chart below. It shows the U.S. Treasury yield curve, or actually not the whole curve, but the spread between 10-year and 3-month government bonds. As one can see, that difference is still negative (as of July 19). It means that the yield curve remains inverted (on a daily basis) since May 2019 (we abstract from the short-lived dip in March 2019).
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