The Dow was up another 200 points yesterday. Of course, markets know more than we do. And maybe this market knows something that makes sense of these high prices. What we see are reasons to sell, not reasons to buy.
There’s no stopping the gold bulls. Hedge funds increased their wagers on a gold rally to the highest since November, betting that this year’s 11 percent advance has more to go. Investors are also loading up on the metal through exchange-traded products, pouring $487 million into SPDR Gold Shares on Wednesday. That was the biggest daily inflow into the world’s top bullion ETF in seven months.
Gold will end the year higher, spurred by faster inflation and political tensions in Russia, Syria and North Korea, according to Intesa Sanpaolo SpA, the best forecaster for the metal last quarter. Prices could take a v-shaped path this year, with a swoon coming mid-year as the Federal Reserve raises U.S. interest rates, said Daniela Corsini, an analyst at the bank. Gold will likely bounce back by year-end, reaching a high of $1,350 an ounce…
“Don’t gain the world and lose your soul; wisdom is better than silver or gold.” You may have to read the quote more than once, but Bob Marley knew what he was talking about. At the moment, investors seemingly disagree a bit with him, and they have pushed spot gold up around 8 percent higher since the beginning of the year.
Gold has rallied strongly by 2.5% so far this week amid a broad-based rally across the precious metals (excluding palladium) as a result of a strong sell-off in the dollar and a decline in US real rates, triggered by: 1) a surge in risk aversion on the back of intensifying geopolitical tensions; and 2) Trump’s rhetoric on the dollar and interest rates in a Wall Street interview.
Gold and silver prices rallied Thursday, bolstered as the U.S. dollar fell after U.S. President Donald Trump said the currency has been trading at “too strong” of a level. June gold advanced by $7.10, or 0.6%, to $1,285.20 an ounce, with prices holding ground at their highest levels since early November. Silver for May delivery climbed 17 cents, or 0.9%, to $18.47 an ounce, poised to settle at its highest level since early March.
Gold prices rallied on Tuesday to their highest levels in about five months as investors grew jittery over the impending French presidential election as well as U.S. relations with Russia and North Korea. June gold gained $7.90, or 0.6% at $1,261.60 an ounce — trading above its 200-day moving average of $1,260.65, which suggests positive momentum building in the yellow metal, if it closes above that level.
Let’s say that you wanted a currency that was stable in value — one that did not go up or down in value. This is good, because then you don’t molest the economy with the various distortions that happen when currencies go up and down in value. By doing so, you explicitly abandon all the many funny money ambitions that involve, one way or another, purposefully manipulating an economy with a currency that is unstable…
The plans of the mayors of the world’s biggest cities to tackle urban air pollution head-on are a major plus for platinum, which catalyses the exhaust systems of vehicles and is the key metal in the emergence of emission-destroying fuel cells. The clean-air programme is being spearheaded by C40 Cities Climate Leadership Group, which connects more than 90 of the world’s greatest cities, representing 650-million-plus people and a quarter of the global economy.
Gold prices rose Tuesday, continuing the decent gains seen in the first quarter. The precious metal recorded gains of around 8 percent in the first quarter on renewed demand. This week, the precious metal is getting a boost from the softer dollar, as well as safe-haven demand following an explosion in St. Petersburg on Monday.