Precious metals have been watching the dollar and interest rates over recent months, and they are getting conflicting signals. The dollar index tanked throughout 2017, and at the start of 2018, the selling continued. The recent rise in the price of precious metals from the middle of December has been a reflection of the diving value of the dollar against other world currencies, particularly the euro.
Gold could hit levels last seen in 2013 if the dollar extends its slide and equity markets reverse. Bullion at $1,400 an ounce is “achievable” in the next two months, Stephen Innes, head of trading for Asia Pacific at brokerage Oanda Corp., said in an interview Thursday. The Bloomberg Dollar Spot Index plunged to the lowest since 2014 after Treasury Secretary Steven Mnuchin endorsed the currency’s drop at the World Economic Forum in Davos.
Chart Patterns The prices of the metals dropped $20 and $0.39, a downhill slide interrupted on Thursday by speculation fueled by some economic data, and which resumed on Friday.
The price of several metals has traditionally been looked at paired with that of another metal. For example, gold and silver prices are looked at in isolation and relative to each other, in part because both metals make up a major part of the jewelry trade.
The secret of creating gold has fascinated alchemists for thousands of years, but now scientists have finally solved the mystery. Precious metals are forged in the cataclysmic collision of neutron stars and then flung out into the universe where they eventually aggregate with other stardust into larger bodies, like planets or comets.
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.
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.
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…
I think most of you reading this right now are aware that gold is unlike any other metal, certainly any other element. It doesn’t play by the same rules as iron or tin or aluminum, and its value has nothing to do with its utility — or lack thereof. People valued the yellow metal for its beauty and malleability eons before they knew of its usefulness in conducting electricity or its chemical inertness. That gold…