Analysis Topic: Commodity Markets - Metals, Softs & Oils
The analysis published under this topic are as follows.Sunday, February 25, 2018
Gold Setting Up For A Massive Upside Price Rally / Commodities / Gold and Silver 2018
Over the past few months, our research team has nailed many of the recent moves in the Metals market thanks to our advanced price modeling systems and detailed research. Recently, we’ve been watching a setup play out in Gold that has excited us. The potential for a massive upside rally that should originate as early as March 19 (only a few weeks away). The reason this is so exciting is that a breakout move in the gold market would indicate a global rush into a protective market because of fears originating from other market sectors.
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Saturday, February 24, 2018
How Global Growth and Infrastructure are Driving Commodities / Commodities / Resources Investing
The global economy is booming again after years in the doldrums, commodities are back in a big way, and metals prices are for the most part, way up.
In our last article showing how commodities are the place to be in 2018, we looked at five drivers: inflation, the low dollar, economic growth, the relative undervalue of commodities versus other sectors, and tightness of supply. This article expands on the economic growth argument, and explains how commodity prices are being moved by a bevy of infrastructure projects around the world – all demanding “yuge”, as Donald Trump would say, amounts of metals.
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Friday, February 23, 2018
One Belt, One Road, One Direction for Precious Metals / Commodities / Gold and Silver 2018
All great events hang by a hair. The man of ability takes advantage of everything and neglects nothing that can give him a chance of success; whilst the less able man sometimes loses everything by neglecting a single one of those chances.
~Napoleon Bonaparte
China's launch several years ago of the One Belt, One Road Initiative is set to become the biggest commercial linking-system constructing project in world history. In the book David Morgan and I co-authored, Second Chance: How to Make and Keep Big Money from the Coming Gold and Silver Shock-Wave, we discuss the "New Silk Road" this way:
...the plan, described as an “economic partnership map with multiple rings interconnected with one another” envisions an economic land belt and a maritime road linking Beijing through Europe to the Mediterranean. This modern equivalent of the old Silk Road would weave together the economies of over half the world’s population via transit corridors of highways, high-speed rail, fiber-optic cables, pipelines, and air and seaport hubs.
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Friday, February 23, 2018
Gold’s Curious Sentiment / Commodities / Gold and Silver 2018
Gold is faring quite well today technically, though you sure wouldn’t know it from the rampant bearish sentiment. Gold’s price is in a strong uptrend over a year old, high in both its current upleg and young bull market. Gold isn’t far from breaking out to its best levels since September 2013, a really big deal. The stock markets even finally sold off after years of unnatural calm. Yet traders are still down on gold.
Across all markets price action drives psychology. When something’s price is rising, traders get excited and bullish on it. So they increasingly buy to ride that upside momentum, amplifying it. Of course the opposite is true when a price is falling, which breeds bearishness and capital flight. Given gold’s great technical picture today, investors and speculators alike should be growing enthusiastic about its upside potential.
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Friday, February 23, 2018
Relationship Between Crude Oil and U.S. Dollar in February 2018 / Commodities / Crude Oil
On Thursday, the price of black gold moved higher after the EIA weekly report showed an unexpected decline in crude oil inventories. Is this one bullish factor strong enough to push light crude higher in the following days? What did the buyers miss?
Yesterday, the Energy Information Administration reported that crude oil inventories declined by 1.6 million barrels in the week ended Feb. 16, beating expectations for a gain of around 1.8 million barrels. This first in four weeks decline in crude oil stocks in combination with a smaller than expected increase in gasoline inventories and drop in distillates supplies encouraged oil bulls to act. As a result, the price of black gold climbed to an intraday high slightly above $63, but did this increase change the short-term outlook for crude oil?
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Friday, February 23, 2018
Why The Next Oil Boom Will Be Fueled By Blockchain / Commodities / Oil Companies
Big Oil is due for a disruption.
The world’s most important industry has been carrying on without any significant changes in its day to day routine for far too long.
But now, the new tech on the block has its sights set on the multi-trillion-dollar oil and gas sector.
It’s official: Blockchain technology has infiltrated Big Oil.
The hype behind blockcain has reached a full-blown frenzy. And for good reason.
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Friday, February 23, 2018
Gold Bull and Bear Markets / Commodities / Gold and Silver 2018
In the previous part, we thoroughly analyzed the bull and bear trends in the U.S. dollar. But what about gold cycles? Let’s look at the chart below, which shows the long-term behavior of gold prices.
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Thursday, February 22, 2018
Gold Bulls, Brace Yourselves – Fed Interest Rate Hikes Are Coming! / Commodities / Gold and Silver 2018
Are they? As usual, the FOMC minutes provoked diverse interpretations, both dovish and hawkish. Let’s analyze them, separating the wheat from the chaff. What do the recent minutes really mean for the gold market?
Hawks Attack Bullion
We have long warned investors about the hawkish treat. For example, as early as in the October edition of the Market Overview, we wrote that the Fed under Powell could be more hawkish than under Yellen. In December, after Powell’s nomination, we elaborated on our stance, pointing out two important changes: (1) the distinct macroeconomic environment – think about faster economic growth and more expansionary fiscal policy – in which Powell would have to act; (2) the composition of the FOMC in 2018 will move slightly from the dovish to the hawkish side. As a result, we stated that “a more hawkish policy would be a headwind for gold prices.”
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Wednesday, February 21, 2018
Gold Miners’ Rally? What Rally? Watch Out for More Fake Moves! / Commodities / Gold and Silver Stocks 2018
Remember how mining stocks soared on Valentine’s Day and how we wrote that a rally is not necessarily bullish? Guess what – this rally has been more than erased. Miners not only closed below the February 14th opening price, but also below the February 13th and 12th closing prices. Mining stocks big rally turned out to be nothing more than just a regular 50% retracement during a decline – something that we saw many times in the past and that we described as likely. But, since the rally was rather inconsequential, then perhaps the decline is inconsequential as well?
Not likely.
It’s not likely because of the context. Gold is still relatively close to its recent high, but mining stocks are very close to their recent low. The latter are underperforming, and Valentine’s Day rally was just a verification of the breakdown in the HUI to gold ratio. Let’s take a look at the details, starting with the currency market (charts courtesy of http://stockcharts.com).
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Wednesday, February 21, 2018
Bitcoin or British Pound ‘Pretty Much Failed’ As Currency? / Commodities / Gold and Silver 2018
– Bitcoin has ‘pretty much failed’ as a currency says Bank of England Carney
– Bitcoin is neither a store of value nor a useful way to buy things – BOE’s Carney
– Project fear against crypto-currencies or an out of control investing bubble?
– Bitcoin will likely recover in value but is speculative and not for widows and orphans
– British pound has been a terrible store of value – unlike gold
– Pound collapsed 30% in 2016 and down 11.5% per annum versus gold in last 15 years
– Fiat currency experiment may fail and dollar set to lose reserve currency status
Tuesday, February 20, 2018
Why Now Is the Perfect Time to Be in Gold and Silver / Commodities / Gold and Silver 2018
We buy gold for many reasons—as monetary insurance, a crisis hedge, and even for simple diversification. And another one of those reasons is coming to the fore right now: as a hedge against overvalued stock and crypto markets.
We’ve been saying for some time that sooner or later these two markets had to correct—and that gold would serve as a buffer against those inevitabilities. It’s a short and simple message, but one that is crucial for investors to address: Are you sufficiently hedged against overvalued equity and cryptocurrency markets?
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Tuesday, February 20, 2018
Governments Are LYING about Their Gold Activities while Mining Companies Cower / Commodities / Gold and Silver 2018
Mike Gleason: It is my privilege now to welcome in Chris Powell, Secretary-Treasurer at the Gold Anti-Trust Action Committee, also known as GATA. Chris is a long time journalist and a hard money advocate and through his tireless efforts at GATA he is working to expose the manipulation of the gold and silver markets. Through GATA's work over the years some important revelations have come to light, which quite honestly should concern everyone.
It's great to have him back with us. Chris, good to have you on again and how are you?
Chris Powell: Oh, very good, Mike. Glad to be here.
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Tuesday, February 20, 2018
New Low in Gold Stocks is a Strong Buy Signal / Commodities / Gold and Silver Stocks 2018
Gold has been on the cusp of a major breakout but someone forgot to tell the gold stocks. Gold is right back at resistance levels yet the various gold stock indices are off their September 2017 highs by 11% to 16%. The relative weakness in the gold stocks (and Silver) is a signal that Gold is unlikely to breakout now. In fact, if Gold were to correct here the gold stocks could threaten support and perhaps make new lows. While that sounds quite bearish, history shows that a break to new lows in gold stocks would be a massive buy signal.
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Tuesday, February 20, 2018
No Silver Lining Here / Commodities / Gold and Silver 2018
As bad as the prognosticators can be with their predictions for the price of gold, the situation for silver is even worse.
Some very recent headlines trumpeted the following proclamations:
“Silver prices to surge…”
“Silver…Why Prices Will Soar”
“Why You Must Own Silver…”
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Monday, February 19, 2018
Gold GLD ETF May Not Yet Be Ready To Break Out / Commodities / Gold and Silver 2018
For those that follow me regularly, you will know that I have been tracking a set-up for the VanEck Vectors Gold Miners ETF (NYSEARCA:GDX), which I analyze as a proxy for the metals mining market. I believe that GDX can outperform the general equity market once we confirm a long-term break out has begun, and I still think we can see it in occur in 2018. This week, I will provide an update to GDX, but want to also discuss the SPDR Gold Trust ETF (NYSEARCA:GLD), which is an ETF that attempts to mirror the movements of gold. While I have gone on record as to why I do not think GLD is a wise long-term investment hold, I will still use it to track the market movements.
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Monday, February 19, 2018
How To Trade Gold Stocks with Momentum / Commodities / Gold and Silver 2018
As a technical trader, I like it when multiple charts, indicators, and asset classes agree with each other for trade setups. This short article is to show you some of the things I look at which provide a buy signal for gold stocks.
One of the key trading tips I learned years ago, is that average a sharp price reversal and surge in price, we as traders can buy into the first pullback with a high probability of a continuation in price.
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Monday, February 19, 2018
Is a New Gold Bull Market on the Horizon? / Commodities / Gold and Silver 2018
A read of the gold charts is indicating that a breakout and new bull market are simply a matter of time, says technical analyst Clive Maund. Gold continues to prepare to break out of its giant Head-and-Shoulders bottom pattern. As we can see on its 8-year chart below, this base pattern has been developing for getting on for five years now, so it has major implications. Upside volume has been building for a long time, driving volume indicators higher, a sign that a breakout and new bull market are simply a matter of time, and not much at that now.
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Monday, February 19, 2018
Inflationary Pressures Building / Commodities / Commodities Trading
Inflationary pressures have been on the rise since 2016. The U.S. Inflation Rate currently sits at 2.20 percent up from 1 percent in early 2016.
Increasing economic growth both globally and domestically have aided the rise of inflationary pressures.
The rise or fall in commodity prices are a good reliable gauge on inflation.
But the biggest driver of natural resource prices appears to be the U.S. dollar.
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Sunday, February 18, 2018
5 Reasons Why Commodities Are the Investment Place to be in 2018 / Commodities / Investing 2018
The stock market pullback of the last couple of weeks has shown that markets are jittery, and will likely be volatile for awhile as investors keep a vigil on rising bond yields (inflation) and potential interest rate hikes. In these uncertain times, one sector that appears to be holding its own, and then some, is commodities. Let’s examine why this is the case, and why commodities are going to be THE place to put your money in 2018.The correction
The stock market correction (let’s not call it a crash) that suddenly saw everyone’s trading apps turn red on Monday Feb. 5 shocked investors. The S&P 500 was off 4.1% at 2,648 - the worst fall in 6.5 years. The rot spread to Asian stock markets the next day, with Japan’s Topix index falling 6.3%, South Korea’s Kospi losing 2.6%, and Australia’s S&P/ASX 200 down by 3.7%.
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Sunday, February 18, 2018
Gold: Another Month, Another Test Of Key Resistance – But This Time With A Difference / Commodities / Gold and Silver 2018
Gold spiked in January, and looked to be headed even higher. But there were some problems. First, futures speculators – as tracked by the Commitment of Traders (COT) report – had gone overwhelmingly long, and since they tend to be wrong at emotional extremes, this was a red flag. Second, gold was approaching the $1360 level that had, since 2014, been the place where upward momentum went to die. For the relevant charts, see Gold Jumps To Crucial Technical Level. Important Action Coming Up.
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