Gold led the charge to recent highs. A correction where the weak get weaker and the strong stay strong. Geopolitics favor precious metals. The path of least resistance for the dollar is supportive for the sector. The long-term trends support buying dips; hold your nose and ignore the naysayers. In their heyday of acceptance and utility, governments employed gold and silver as comfort for their paper currencies. While countries around the world abandoned their policies…
Gold prices on Friday gave up the initial pop higher that followed another North Korean missile test, leaving the precious metal on track for a weekly loss and marking a solid retreat from the one-year highs scored last Friday.
Fighting wars, big tax cuts and economic stimulus packages have all added to the debt burden The U.S. has exceeded $20 trillion in national debt — the nation was a cool $20.16 trillion in the red as of today — and now that it’s crossed that mark, get ready for some finger pointing over who’s to blame.
Gold continued its march higher Friday after striking a one-year closing high in the previous session as the dollar and U.S. Treasury yields skidded lower. The yellow metal gained, and was on track for a roughly 1.7% weekly gain for the most-active futures contract, as continued strength in the euro pushed the buck toward its worst week in more than three months.
Palladium has been on a tear this year. Its spot price increased 45 percent year on year in the first half of 2017, and it now trades at a 16-year high. Although the rally has largely been attributed to the strong demand from the automotive industry, there’s a geopolitical risk premium baked into the price.
Gold climbed on Friday, adding to its roughly 4% surge for August, after a closely watched snapshot of the U.S. job market revealed tepid late-summer hiring and almost no paycheck growth. The report keeps alive the close debate over whether the Federal Reserve has a green light to raise interest rates again this year given still-concerning low inflation readings, including within wage data.
Sentiment in Washington has shifted: There is now more that can go wrong than right, many say. The Dow Jones Industrial Average posted its biggest decline in three months on Thursday, one week after a similar selloff of similar scale sent stock indexes tumbling around the world.
According to the most recent report on the U.S. Financial Institutions Derivatives trading activity, U.S. banks held a record amount of precious metals contracts in the first quarter of 2017. Not only did U.S. banks report a record amount of precious metals contracts, but they also held an unprecedented quantity in notional value of commodity and equity derivative contracts.
The chances of a government shutdown in the fall are growing. Congress returns to Washington next month facing a full plate of must-pass legislation and a shutdown threat that looks more serious after President Trump suggested on Tuesday he won’t support a spending package that omits new funds for a southern border wall.
Cryptocurrencies and other speculative investment vehicles have been in focus over the past several weeks because of their volatility and rising prices. Historically, the risk-seeking portion of the market would look to asset classes such as physical precious metals in times of uncertainty and/or heightened volatility, but due to an underlying downtrend, it appears as though recent developments in this area are going unnoticed. In this article, we take a closer look at the charts…