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Tag Archives: Sunshine Profits

The Prospects of Gold’s Next Upswing

The USD Index rallied on Friday, and gold responded with an intraday decline – that’s normal. What’s not necessarily normal is the size of the daily change in gold compared to the size of USD’s rally. USD Index Bounces Higher Namely, gold futures ended Friday’s session exactly where they had closed on Thursday. There was no daily change in gold, even though it – theoretically – should have declined given USD’s upswing. What does it mean? Gold’s resilience means that gold has probably not...

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Global Industrial Slump and Brexit Dance Go On. Will Gold Bop?

The Brexit saga continues. Both the U.S. and China’s industrial sectors suffer from the trade war. How will the Fed react to these downside risks tomorrow? The expectation is that it’ll cut rates, but will that really happen? And how will gold take to that? Brexit Dance Goes On Last week, we wrote about the Brexit saga, diving into the latest battles between Johnson and Parliament. But the drama has not ended yet. As we concluded one week ago, “Brexit is far from over, and British politics...

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Gold, the Shining Star Among Commodities

Gold is the most effective commodity investment, yet it is under-invested, the WGC reports. What makes it special and deserving of our focus? And how to translate that focus into an appropriate allocation within one’s portfolio? Gold is Unique Commodity. Or… Maybe Not? Gold is often included into commodities. It seems natural, gold is a metal, after all. And just like other raw materials, it is used in the production of manufactured goods. But gold is much more than that. According to the...

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The Duel Between Johnson and Parliament. Will Gold Win?

Boris Johnson struggles to push the Brexit agreement through the British Parliament. For it can bite back! Who wins this battle? One could hope that gold, but this is not so certain… Johnson’s Struggle, Explained On Thursday, the breaking news came out that the EU and the UK reached agreement on Brexit. The agreement scrapped the Irish backstop that had formed the bulk of the opposition to the former proposals. Naive who believed that it would change something! We have to admit that we...

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Gold, the Ultimate Safe Haven Asset. A Looming Nobel Prize?

Yesterday, the Nobel prizes in economics were awarded. Unfortunately, gold has been omitted and got nothing. How unfair! But looking at the Dutch central bank press release, gold would have much higher chances if they were the ones granting the prizes and not the Swedish central bank! 2019 Nobel in Economics and Gold Yesterday was a big day! At least for all those boring economists and similar bean-counters. The Nobel Prize in economics was awarded. Abhijit Banerjee, Esther Duflo, and Michael...

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The Fed Grows Concerned – Should Gold Investors Do the Same?

The Fed released the minutes from its last meeting yesterday. What can we learn from the new light they shine on the U.S. monetary policy? How will it affect the gold market? Minutes Show That FOMC Members Are More Worried Now The minutes from the Sep FOMC meeting show that the Fed is more worried about the economy. The Committee members noted that downside risks had become more pronounced due to the increased trade conflicts, more intensified geopolitical uncertainty, and more fragile...

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Gold in the Negative Real Interest Rates Environment

Many believe that negative interest rates will never arrive to the United States. This can’t possibly happen here. The discussions of their theoretical benefits almost remind you of the not-in-my-backyard mentality. But this is not true – they are already present in America. Hard to believe it? Hiding in plain sight, let’s take it a step further and look at gold in the negative real interest rates environment.   Gold in the Negative Real Interest Rates Environment Many people believe that...

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Is Reserve Bank of Australia a New Friend of Gold?

Reserve Bank of Australia joined the chorus of easing central banks, cutting interest rates to record lows. Predictably, that sent the Aussie dollar plunging. Should gold bulls cheer this move? Reserve Bank of Australia Slashes Interest Rates The Reserve Bank of Australia has cut the official interest rate from 1.00 percent to 0.75 percent earlier today. As the chart below shows, the 0.25 percentage point moved the interest rate to a record low level, following cuts in June and July. Chart 1:...

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Gold among Negative-Yielding Bonds

Teaser: The amount of global debt with negative yields soared to $16 trillion, or more than 25 percent of the market. Isn’t this economic madness? We invite you to read our today’s article about the negative interest rates and find out what they imply for the gold market. Gold among Negative-Yielding Bonds  The amount of global debt with negative yields soared to $16 trillion, or more than 25 percent of the market. This number has nearly tripled since October 2018. In July, even the 30-year...

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