Market participants, traders and investors are anxiously awaiting this week’s testimony to Congress by the Chairman of the Federal Reserve, Jerome Powell. This is possibly the most important event to take place this week in regards to the future direction of gold. Although gold traded above $1400 per ounce in overseas trading last night, once trading began in New York gold prices softened and as of 5:35 PM EDT is trading at $1397.60, this basis the most active August futures contract. Although this decline is nominal, a decline of $2.50 today indicates some uncertainty as to what Chairman Powell... Read more
If you ever questioned whether or not market participants, investors and traders have factored in the belief that the Federal Reserve will cut the current Fed funds rate at this month’s FOMC meeting, question no more. Today you received a strong confirmation that they had. It has been widely accepted that the recent rallies in both gold and US equities were deeply tied to Federal Reserve action which would result in a series of rate cuts rather than a monetary policy of normalization, or tightening.
Case in point: today’s release of the jobs report by the US Labor Department came in at a... Read more
Gold pricing has benefited from recent geopolitical and economic events and has gained just over $160 per ounce since the beginning of this year. In fact, gold has gained just over 11% in 2019* (* a correction from yesterday in which I stated that gold had gained 8.8% year to date).
There are multiple events and actions which are attempting to reignite the global economic expansion that recent data suggests is slowing down. The Federal Reserve along with many global Central Banks have decisively adjusted their monetary policy to be much more accommodative and dovish, similar to the action... Read more
After selling off and gaping lower on the open in Australia forty-eight hours ago and trading to a low of $1385, gold quickly recovered with today’s dramatic gain of $27. As of 4:19 PM EDT, gold futures basis the most active August contract is currently fixed at $1417.10 which is a net gain of $27.80 on the day. This amounts to a 2% gain in gold pricing in a single day.
Apparently whatever bearish sentiment unfolded immediately following the G-20 meeting in Osaka, Japan last week quickly diminished as extremely bullish market sentiment returned. Without a question this one will certainly be... Read more