Gold: What Is Sentiment Telling Us

Gold (GLD) has enjoyed a huge run off of its June lows, thanks to a complete U-turn in Fed Policy. Initially, 2019 was expected to be the year of three rate cuts and a continued effort to cool off inflation, but Powell has walked back all of his comments, and 50 basis points of cuts before year-end are now on the table. While this is a boon for the stock market (SPY) that was dealing with recession worries up until just recently, it’s an even bigger help to the yellow…

Can Gold Replace The USD As Reserve Currency?

One of the stories gold bulls like to tell is the decline of the US Dollar as the world reserve currency. This story usually runs along the following lines: The US is overspending massively, thus the US is a debtor nation. Debtor nations don’t last forever, thus the US is heading for collapse. When countries collapse, their currency becomes worthless. Since gold has never been worthless in the history of modern civilization, trade Dollars for gold now so you’ll preserve value heading into that uncertain future. That’s it in a nutshell, isn’t it?…

Is Silver Really a Better Buy Than Gold?

While gold has blasted off to new 5-year highs, silver has been unable to even break its downtrend line. Silver continues to be the lagging metal by a significant margin and is significantly underperforming the S&P-500. Based on this under-performance, I believe gold is the much better option until this relative weakness begins to change. With Jerome Powell’s comments yesterday reiterating his stance that he’s open to rate cuts, it’s no surprise that gold got yet another bump and is solidified itself back above the $1,400/oz level. Inflation is great…

Gold flashes a warning signal for currency markets

Gold breaks out of a long-term trading range Gold has been appreciating in all of the leading currencies since the early 2000s Currencies are losing value after years of dovish monetary policies Gold traded in a wide range last week with the August futures contract on COMEX trading between $1384.70 and $1441.00 per ounce. The price settled last Friday at $1400.10, which was closer to the low because of the jobs report that injected a degree of doubt over a rate cut at the July FOMC meeting. The dollar index…

Technically, gold charts look very bullish

The recent move higher in gold has flipped the quarterly chart back to bullish. The Fed’s pivot is likely a tailwind for gold, and thus far price action in gold is responding well to this news. As long as the $1,325/oz level is defended on a weekly close, the bulls remain in control of the bigger picture. While Q3 2018 seems like an eternity ago, it was a troublesome landscape for the metals and miners, with a hint that we might have the first real hawk at the Fed in…