I cannot think of many organizations or people that can convey a 180° pivot by the use of a single word, except for the Federal Reserve and its chairman, Jerome Powell. When we looked at the CME’s FedWatch tool yesterday it predicted less than a 20% probability that the Federal Reserve would announce and implement a rate cut today. In fact, that is exactly what happened.
The statement made, as with all Fed statements spoken by Chairman Jerome Powell during the press conference crucial is the ability to read between the lines or understand the nuances of how a single word can indicate a... Read more
As we look at this year, besides from the rally which began in mid-August 2018 up to the former record high of this year, it is clear to see that that was possibly the only noteworthy and extended rally we have seen since 2017.
Last year had an unusual characteristic at the beginning of the year in that it was fighting tooth and claw to track above $1350 to $1370, to match or exceed the previous highs that had been made in prior years. Multiple attempts to exceed this price point were all met with failure.
Historically speaking gold prices have had insurmountable resistance at roughly... Read more
The next couple of weeks will be absolutely critical in terms of statements made by both the Federal Reserve and the presidents of the two superpowers when they meet in Osaka Japan later on this month.
As for the latter there are not high expectations that the two presidents can actually solve the complex issues and negotiations needed to resolve the trade war, rather what market participants will look for is a solitary tone and a willingness on both sides to make concessions shall restrain, but most importantly exhibit flexibility in their current stance. It is the tone and flexibility that... Read more
While on the surface it seems that gold prices finished rather flat in trading today. The actual truth is that gold gained moderately as buyers bid the precious yellow metal higher, however extreme dollar strength dwarfed those gains. Spot or physical gold closed today at $1341.10, which is a net decline of $0.80 on the day.
However, on closer inspection we can see that bullish market sentiment resulted in traders bidding gold prices higher by $6.45, with dollar strength contributing a decline of $7.25. This according to the KGX (Kitco gold index).
Gold futures also had a similar... Read more