Category: Gold Views

The Daily Market Report: Gold Rebounds From Earlier Losses


USAGOLD/Peter A. Grant/02-21-17

Gold has rebounded from earlier corrective losses after PMI data disappointed. The yellow metal is now trading higher on the day, more than $12 off its intraday low.

The recovery comes despite today’s firmness in the dollar, which in reality is more a function of euro weakness. The single currency has been hit pretty hard by reports that Marine Le Pen’s lead in presidential polls is growing, along with the attendant Frexit fears.

European Commissioner Pierre Moscovici acknowledged on CNBC today that if Le Pen is elected and follows-through on her pledge to take France out of the EU, it “would be the end of the European project.” While Moscovici doesn’t see any chance for Le Pen to win because she “never even ever won a regional election,” but that clearly is not a disqualifier anymore.

Keep in mind that Itexit and Grexit continue to simmer on the back-burner. The former could easily mark the end of the EU as well, but even the latter could be disruptive in the same way that Brexit has been.

A collapse in the euro amidst rising breakup risks would unquestionably send massive flows into the dollar, but gold would likely benefit as well. A further rise in the greenback would present a very serious conundrum for the Fed as well.

Posted in Daily Market Report, Gold News, Gold Views |

Higher dollar pressures gold, uncertainty offers support

Reuters/Pratima Desai/02-21-17

“Gold is capped by the likelihood that U.S. monetary policy will be tighter at some stage, potentially in March,” Societe Generale analyst Robin Bhar said.

“There is a lot of political uncertainty, there are safe-haven flows going into gold.”

PG View: These are opposing forces, but the latter seems to be winning out. The yellow metal has rebounded from earlier losses and is now slightly higher on the day, about $12 off the intraday low.

Posted in Gold News, Gold Views |

Morning Snapshot: Gold retreats into the range

USAGOLD/Peter A. Grant/02-21-17

Gold has retreated into the range, weighed by higher yields and a stronger dollar. The greenback has been buoyed by revived rate hike expectations and a weaker euro that is sharply lower this morning on rising concerns over a possible Frexit (French exit of the EU).

Philly Fed President Harker said in an MNI interview this morning that he “would not take March off the table at this point.” Meanwhile, European Commissioner for Economic and Financial Affairs, Pierre Moscovici said that the election of Marine Le Pen “would be the end of the European project.”

Frexit would clearly be a much bigger deal than Brexit ever was and markets would be massively roiled. Moscovici went on to add that he “cannot imagine 50% of the French are crazy enough to vote for her.” It seems we’ve heard a number of such prophesies within the last year . . .

Markit manufacturing and services PMI for February is out later this morning. We also will see FedSpeak from Kashkari, Harker and Williams.

Posted in Gold News, Gold Views, Snapshot |

The Daily Market Report: Gold Remains Well Bid Near Highs for the Year


USAGOLD/Peter A. Grant/02-17-17

Gold is narrowly confined ahead of the long holiday weekend, just below the highs for the year that were set last week at 1244.71. Safe haven interest is still seen as being supportive to the yellow metal, while speculation about a possible rate hike in March may be limiting the upside.

Political uncertainty both in the U.S. and Europe continues to bolster haven interest. There has definitely been a lot more positive press coverage in recent weeks, centered both on the aforementioned political risks and rising concerns about inflation.

Both PPI and CPI for January doubled expectations, suggesting that the Fed’s massive efforts to stoke inflation may finally be baring fruit. It only took about a decade . . .

So, now what’s the Fed’s next move? Do they allow the “overshoot” that has been discussed in more recent years, or do they initiate additional tightening measures at the risk of choking-off the nascent growth prospects?

With growth “quite disappointing” even by Fed Chair Yellen’s estimation, I think they’ll hold in March and hope to see a pickup in GDP by midyear. If June and September start looking questionable, I think the central bank’s already dubious credibility could take another hit.

Additionally, President Trump will likely be moving to fill three vacancies on the Board of Governor within the next several months. I have speculated that given his agenda of tax cuts and debt fueled infrastructure spending, he might be looking to pack the Fed with doves. His recent statements about the dollar being too strong (or other currencies being too weak), plays into this as well.

Nothing would pull the plug faster on the 6-year dollar rally than a policy about-face by the Fed. Or even the message that we won’t tighten any further until the global economy gains momentum and other central banks start removing accommodations.

Posted in Daily Market Report, Gold News, Gold Views |

This Country Wants Everyone to Have 100 Grams of Gold

Bloomberg/Evgenia Pismennaya & Anna Andrianova/02-15-17

A landlocked nation perched between China and Kazakhstan is embarking on an experiment with little parallel worldwide: shifting savings from cattle to gold.

…“Gold can be stored for a long time and, despite the price fluctuations on international markets, it doesn’t lose its value for the population as a means of savings,” he said in an interview. “I’ll try to turn the dream into reality faster.”

PG View: Savvy savers elsewhere are shifting their savings from colorful pieces of paper to gold.

Posted in Gold News, Gold Views |

Gold edges higher as global equities hesitate

Reuters, via CNBC/02-17-17

Gold crept higher on Friday as investors opted for the safe haven qualities of bullion due to uncertainty about U.S. and European politics as well as the direction of stock markets.

…”Gold is close to its recent multi-month high despite the strong dollar, due to an increase in volatility on the equity markets and more uneasiness on the political front, which is supporting the search for safe-haven assets,” said Eugen Weinberg, head of commodity research at Commerzbank.

Posted in Gold News, Gold Views |

Morning Snapshot: Gold keeps the pressure on the upside

USAGOLD/Peter A. Grant/02-17-17

Gold continues to pressure the upside, putting the high for the year at 1244.71 to the test. Lower stocks and yields this morning are seen as supportive. The dollar index is trading slightly higher, but within yesterday’s range.

The economic calendar is quiet ahead of the long holiday weekend, with just January LEI out at 10:00ET. Expectations are for a 0.4% rise.

U.S. markets will be closed on Monday in observance of President’s Day. Canadian markets will be closed as well for Family Day.

Posted in Gold News, Gold Views, Snapshot |

The Daily Market Report: Gold Keeps the Pressure on the Upside


USAGOLD/Peter A. Grant/02-16-17

Gold remains well bid, pressuring the highs for the year that were established last week. While the yellow metal has been unable to break-through to new highs as of this moment, the impetus remains to the upside, particularly with the dollar giving back recent gains.

Gold recovered nicely from yesterday’s intraday losses after Fed Chair Yellen acknowledged during testimony before the House Financial Services Committee that economic growth has been “quite disappointing.” That sort of flew in the face of her previous testimony, which centered on economic optimism, the achievement of Fed goals and the belief that it would be “unwise” to wait too long to raise rates.

“Economic growth has been quite disappointing.” — Janet Yellen

So, that begs the question: Why did we have to wait until she said the words, when the data clearly illustrate the reality. The last time we saw annual growth at 3% or greater was 2005. That’s 12-years ago! Growth last year was just 1.6%. Forecasts for Q1-17 have been revised lower in recent weeks, even as Yellen and her minions preach optimism and the need for multiple rate hikes this year.

While the Fed may be finally generated the inflation they have long sought, real yields out to the 10-year note remain negative. CPI rose to a 2.5% annual rate in January, while the 10-year note is yielding 2.45% today.

With our major creditors dumping Treasuries at an unprecedented rate, the Fed may in reality not need to do anything more to prompt rates higher. Supply is certainly not going to be a problem if fiscal stimulus commences, on top of the pig-through-a-python demographic reality as retiring baby boomers start drawing on already underfunded entitlements.

All of this goes a long way toward explaining why gold is defying widely held beliefs that it can’t rise when stocks are going up, yields are going up and the dollar is going up. In fact, this might be viewed as a signal; that now perhaps more than ever, gold is a critical component of a well diversified portfolio.

Posted in all posts, Daily Market Report, Gold News, Gold Views |

It’s only a matter of time before China has the biggest gold pile in the world


MoneyWeek/Dominic Frisby/02-16-17

“Whoever has the gold makes the rules” runs the old saying.

So, where’s the gold?

…China is now the world’s largest gold producer. It has held this title since 2007 when it overtook South Africa and it shows no sign of handing back the mantle.

…Importing gold was something China began in earnest in 2011 – around about the time that gold peaked at $1,920 an ounce. The longer the bear market has gone on, the more China has bought. I’m not sure if that makes them canny buyers or the opposite, but something is going on and, when you consider the cumulative effects, it is something big.

Posted in Gold News, Gold Views |

Inflation Pickup Spurs Gold demand

Kitco News/Peter Hugg/02-16-17

Although Fed Chair Janet Yellen expressed a more hawkish bias, there is still skepticism that the Fed will move in March. With the uncertainty of upcoming European elections and until the administration provides a clear fiscal plan, it is likely the Fed may continue to hold off in March. Against that possibility, U.S. consumer prices rose to a four-year high, which gave bulls enough comfort to engage, on the assumption that the Fed is getting further behind the inflation curve. A close above the $1,237 level should usher in a test of the $1,255 area.

Posted in Gold News, Gold Views |

Gold investors smell a rat in this ‘animal spirits’ market

MarketWatch/Barbara Kollmeyer/02-16-17

The blogger maintains “gold is telling the world something” right now, and seems to be among those who don’t quite buy all the market enthusiasm right now. “I believe that gold is hinting that the market is very overvalued. As the market has inflated up, gold has also risen (a lot) and is up year to date in 17’ more than the SPX,” he said in follow-up comments via email.

…“As long as gold is above $1,200, it is a long. Over $1,300 starts a move to $1,600 gold. I think we see $1,450 this year, and I think gold can smell the BS in the market right now,” says the blogger.

Posted in Gold News, Gold Views |

Gold rises as dollar gives up gains; US rates in focus


Reuters, via CNBC/02-16-17

Gold rose on Thursday as the dollar weakened after a 10-day winning streak and investors took the opportunity to buy bullion as a hedge against political uncertainty in the United States and Europe.

…Concern over President Donald Trump’s policies and elections in the Netherlands, France, and Germany this year have fueled gold’s rise to a peak of $1,244.67 on Feb 8.

…”It’s a tug of war between a higher probability of U.S. rate hike in March and upcoming elections around Europe which are creating uncertainty and demand for safe assets,” said Jens Pedersen at Danske Bank.

Posted in Gold News, Gold Views |

Morning Snapshot: Gold approaches last week’s high as dollar weakens

USAGOLD/Peter A. Grant/02-16-17

Gold pushed higher to approach resistance marked by the 1244.71 peak from last week. A short term breach of this level would put the yellow metal at new 14-week highs.

This morning’s data had little impact on the market. Initial jobless claims rose modestly last week. Housing starts declined by 2.6% in January, but still came in higher than expected thanks to a positive revision to December. The Philly Fed index beat expectations by a wide margin.

The dollar has come under renewed pressure, despite recent upbeat data and heightened rate hike expectations. Even so, gold has fared quite well in the face of the 2-week rebound in the dollar index. If the dollar gives it all back, gold should continue its trend higher.

Posted in Gold News, Gold Views, Snapshot |

Traders to Stay Bullish on Gold – Inflation to Accelerate Faster than Fed Hikes Rates

CommodityTradeMantra/Huileng Tan/02-14-17

A rally in gold prices has room to run on risk concerns from politics to interest rates, so hold on to those long positions, a UBS analyst said Monday.

“There’s plenty of uncertainty out there,” said the bank’s commodity and Asia-Pacific commodity head, Dominic Schnider. Top among consideration is the pace of interest rate hikes from the Federal Reserve, he added.

“Inflation is going to accelerate faster than the Fed is going to hike rates; that’s good for real assets. On top of it, we are looking for weak dollar on broad basis; that combination has a good tendency to boost gold prices,” he told CNBC’s “Squawk Box.”

Posted in Gold News, Gold Views |

The Daily Market Report: Gold Recovers From Early Losses, Despite Soaring Stocks, Higher Rate Hike Expectations


USAGOLD/Peter A. Grant/02-15-17

Gold slipped to new lows on the week after a round of robust U.S. economic data heightened the prospects for multiple rate hikes this year. However, these dowticks attracted buying interest and the yellow metal subsequently rebounded to establish new intraday highs.

Higher than expected consumer price inflation, solid retail sales and an impressive jump in the Empire State index all conspire to push rate hike expectations higher. Prospects for a move at the March FOMC meeting rose to 43% intraday.

Weaker than expected industrial production tempered enthusiasm somewhat, but more talk of tax reform from President Trump pushed stocks higher. Trump said his tax plan would benefit both middle-income families and businesses by lowering rates and simplifying the tax code.

During her second round of testimony before Congress, Janet Yellen reiterated that waiting too long to raise rates would be “unwise.” However, under questioning — and despite her expressed optimism over the past two-day — she acknowledged; “Economic growth has been quite disappointing.”

In fact, on the heels of this morning’s data dump, the Atlanta Fed’s GDPNow forecast for Q1-17 was lowered to 2.2%. That’s a 50 bps drop from the 2.7% forecast from 09-Feb and off more than 100 bps from the 3.3% prediction made earlier in the month.

So, if inflation is heating up and growth remains anemic; are we entering into a period of stagflation? In a MarketWatch article about renewed interest in gold by money managers, the author cites several reasons for this:

They’re worried about inflation, stagflation and global protectionism, and they think gold is the best insurance against all three. — Brett Arends, MarketWatch Columnist

That would go along way toward explaining why gold is so well supported in the face of ongoing stock market gains, rising yields and a generally firm dollar. Savvy investors are diversifying their holdings; laying in some insurance in the form of gold as a means of preserving the wealth that they have accumulated.

It reminds me of the Grant Williams presentation called Nobody Cares from about a year ago, where he likens gold to flood insurance. It’s a fitting analogy; because when the storm comes — and oh it will come — you’ll be thankful you have insurance.

Williams believed that — outside of “us” — nobody cared about gold at the time. However, he speculated that “the day is coming when that’s going to change dramatically. And when that day arrives the pendulum is going to swing to the other extreme [Everybody Cares]. And that’s a move that can not be resolved without vastly higher [gold] prices.”

A little more than a year after his presentation, and with money managers now taking interest, we are assuredly closer to the day when everybody cares about gold again. Now might be a good opportunity to reevaluate your gold position.

Posted in Daily Market Report, Gold News, Gold Views |

Money managers no longer hate gold, saying it’s undervalued


MarketWatch/Brett Arends/02-15-17

The world’s biggest and most powerful money managers usually hate gold.

But not today.

The latest survey of nearly 200 money managers worldwide, controlling more than half a trillion dollars in investment assets, shows a sudden and rare burst of bullishness about the yellow metal.

They’re worried about inflation, stagflation and global protectionism, and they think gold is the best insurance against all three.

Posted in Gold News, Gold Views |

Gold prices attempt to snap 4-session skid

MarketWatch/Myra P. Saefong & Rachel Koning Beals/02-15-17

Gold prices tilted higher Wednesday, attempting a rebound after a four-session fall, but the gains looked vulnerable as the U.S. dollar and bond yields strengthened in the wake of hawkish comments from Federal Reserve Chairwoman Janet Yellen on the nation’s interest-rate picture.

…Gold traders listened closely to Tuesday’s testimony from Yellen, and “she confirmed what we have been noticing—that inflation pressures are increasing, which would warrant an acceleration of the rate hike cycle,” Nico Pantelis, head of research at Secular Investor, told MarketWatch.

Pantelis said he believes this is actually “very bullish for gold, as the price also shot up during the last rate-hike cycles.”

Posted in Gold News, Gold Views |

Morning Snapshot: Gold retreats on upbeat U.S. data

USAGOLD/Peter A. Grant/02-15-17

Gold has come under selling pressure following a round of generally upbeat U.S. economic data upped the prospects for a March rate hike. The yellow metal slipped below support at 1218.40/1217.51 before stabilizing somewhat.

The initial indication of hotter inflation provided yesterday by PPI did indeed carry over to consumer prices in January. CPI came in at +0.6%, twice expectations of +0.3%. Core came in at +0.3% on expectations of +0.2%.

Retail sales bested expectations in January at +0.4%, versus expectations of +0.1%. December was revised to +1.0% from +0.6% previously. The NY Empire State index surged to 18.7 in February, well above expectations of 7.0, versus 6.5 in January.

Janet Yellen testifies before the House later this morning. Her testimony yesterday before the Senate was interpreted as being rather hawkish. Today she has additional evidence that bolsters the case for another rate hike, perhaps as soon as the March FOMC meeting.

Yields are on the rise, bolstering the dollar and giving stocks pause. And yet there are still plenty of uncertainties out there as well — political, geopolitical and economic in nature — that just might give the Fed pause.

Posted in Gold News, Gold Views, Snapshot |

Gold comes under heavier pressure after upbeat data bolster possibility of March rate hike.

Posted in Gold News, Gold Views |

The Daily Market Report: Gold Gives Back Early Gains as Yellen Strike a More Hawkish Tone


USAGOLD/Peter A. Grant/02-14-17

Gold rose initially on Tuesday after an indication of higher inflation. However, these gains could not be sustained as Janet Yellen continued to beat the drum of multiple rate hikes this year.

January PPI came in a +0.6%, twice expectations of +0.3%. Core was +0.4% on expectations of +0.2%. Higher energy prices were cited as the primary driver and we’ll find out tomorrow if these same forces carried through to consumer prices. CPI is expected to show a 0.3% gain in January, with core rising 0.2%, when the data are released tomorrow morning.

Gold gained on PPI data, but retreated when Janet Yellen suggested in testimony before the Senate Banking Committee that it would be unwise to wait too long before raising rates again. The suggestion was that March is on the table, but the market seems to think June is the more likely reality.

“As I noted on previous occasions, waiting too long to remove accommodation would be unwise.” — Janet Yellen

Ms. Yellen expressed some degree of caution though, adding that “considerable uncertainty attends the economic outlook,” citing “possible changes in U.S. fiscal and other policies.” In essence, everything could change based on the fiscal policy agenda pursued by the Trump administration.

The generally hawkish tone pushed yields higher and the dollar index reached new 4-week highs. U.S. stocks dipped and then recovered as the prospects for a corporate tax cut seems to outweigh tighter monetary policy at this point. We’ll see how that plays out if the dollar recovers further.

As for Ms. Yellen’s optimism, I redirect you to yesterday’s DMR, where we talked about anemic growth. When Yellen said the rate hike this past December was justified because of an improving economy, she seemed to be ignoring the rather significant growth slowdown seen in Q4-16.

We’ll wait and see how this all reconciles in the weeks and months ahead. However, there is still enough uncertainty out there to keep the gold market underpinned.

Posted in Daily Market Report, Gold News, Gold Views |

Gold gives back earlier gains as Yellen warns that waiting too long to hike again would be unwise.

Posted in Gold News, Gold Views |

Morning Snapshot: Gold rises on inflation worries

USAGOLD/Peter A. Grant/02-14-17

Both gold and silver are back on the rise this morning, buoyed by heightened inflation expectations. The yellow metal has exceeded yesterday’s high at 1218.40 and silver has probed back above $18.

January PPI came in at +0.6%, double expectations of +0.3%. Core PPI was +0.4%, also double expectations. Higher energy prices are being cited as the primary driver. CPI comes out tomorrow.

When inflation expectations — and inflation itself — are on the rise, investors turn to gold as means of preserving purchasing power. It also arguably bolsters the case for additional rate hikes, but as we discussed in yesterday’s DMR, growth remains sluggish.

Investors will be watching Janet Yellen’s testimony later this morning, and again tomorrow. There is also FedSpeak from Kaplan and Lockhart today.

Posted in Gold News, Gold Views |

The Daily Market Report: Gold Weighed by Higher Stocks, But Growth Risks Underpin


USAGOLD/Peter A. Grant/02-13-17

Gold is maintaining a corrective to consolidative tone after failing to sustain Friday’s rebound in the face of continued stock market gains. Shares remain buoyed by President Trump’s promise that he will announce something big with regard to corporate taxes in the weeks ahead.

The trending stock market is certainly no reason to eschew one’s hedges. In fact, the current political and geopolitical environments are seen as key underpinnings to the gold market.

Data out this week are likely to reinforce rising concerns about inflation, which should also help support gold. While this is exactly what the Fed has been striving for, that it is now coming without the support of wage or economic growth should raise concerns.

In an article published last week on the St. Louis Fed’s website, entitle Why Does Economic Growth Keep Slowing Down?, the author points to weak productivity and capacity utilization.

The U.S. economy expanded by 1.6 percent in 2016, as measured by real gross domestic product (GDP). Real GDP has averaged 2.1 percent growth per year since the end of the last recession, which is significantly smaller than the average over the postwar period (about 3 percent per year). — Fernando Martin, Senior Economist, St. Louis Fed

Aside for a very minor turn higher in Total Factory Productivity, the above chart doesn’t show any real indication that things are starting to turn around. And Mr. Martin notes that the 1.6% annualized growth in 2016 is well below even the weak average over the past 8-years.

Sort of makes you want to look at the recent stock market performance with some degree of suspicion. I wonder whether the anticipated corporate tax cut will do anything to improve productivity, capacity utilization, or wages for that matter . . .

Posted in Daily Market Report, Gold News, Gold Views |

It’s no flash in the pan; stay long on gold: UBS


CNBC/Huileng Tan/02-12-17

A rally in gold prices has room to run on risk concerns from politics to interest rates, so hold on to those long positions, a UBS analyst said Monday.

“There’s plenty of uncertainty out there,” said the bank’s commodity and Asia-Pacific commodity head, Dominic Schnider. Top among consideration is the pace of interest rate hikes from the Federal Reserve, he added.

“Inflation is going to accelerate faster than the Fed is going to hike rates; that’s good for real assets. On top of it, we are looking for weak dollar on broad basis; that combination has a good tendency to boost prices,” he told CNBC’s “Squawk Box.”

Posted in Gold News, Gold Views |

Higher dollar and equities weigh on gold

Reuters, via YahooFinance/Pratima Desai/02-13-17

Gold prices slipped on Monday as the dollar rose and equities climbed, but political and economic uncertainties in the United States and Europe are expected to continue to give underlying support for now.

…”Support for gold because of politics will hold this side of the French election,” said Danske Bank analyst Jens Pederson.

“Le Pen’s comments on euro membership are very much on the radar. The UK vote to leave the EU and Trump’s election were unexpected … Investors will lean towards safe assets.”

Posted in Gold News, Gold Views |

Morning Snapshot: Gold slips back toward Friday’s corrective low

USAGOLD/Peter A. Grant/02-13-17

Gold came under renewed pressure in early U.S. trading, falling back to the low end of the recent corrective range. The global risk-on trade continues to buoy stocks, even with Japan’s Q4 GDP miss. U.S. shares still seem optimistic on President Trump’s promised “big news” on the corporate tax front.

I will tell you though that America’s biggest creditors aren’t dumping bonds because they suddenly have a higher risk appetite (see the Bloomberg article posted earlier this morning). They are ditching Treasuries because they sense there are heightened risks in the U.S. that are going to continue to weigh on bonds.

There is nothing on the U.S. calendar today, but the rest of the week is quite busy. Highlights include January PPI tomorrow and January CPI, retail sales and industrial production on Wednesday. Janet Yellen also appears before Congress on Wednesday.

Posted in Gold News, Gold Views, Snapshot |

The Daily Market Report: Gold Rebounds, Led by Silver


USAGOLD/Peter A. Grant/02-10-17

Gold has rebounded from earlier downticks to trade higher on the day. It looked like the yellow metal was dragged higher by silver today, which touched $18 for the first time since early November.

Gold — and silver as well — were deemed to be under pressure because of heightened rate hike expectations in the wake of yesterday’s much stronger than expected December wholesale sales. Along with President Trump’s assurance of big news on the corporate tax front in the coming weeks, stocks have continued their trend higher.

With stocks and gold rising in tandem, investors may be looking past the rhetoric and thinking through the implications of lower tax revenue and higher government spending. It could all work out if new policies are implemented that really reinvigorate growth to the point where revenue either holds steady or rises. However, there’s plenty of reasons to still have doubts — both domestic and global — which may be promoting investors to lay in a hedge in the form of gold.

My concerns were reinforced when watching the Grant Williams presentation that I posted earlier today. I encourage you to take 30-minutes this weekend to watch this compelling bit of analysis. We’ll be waiting for your phone call on Monday . . .

FOMC Board of Governors member Daniel Tarullo announced that he was resigning today. That means President Trump now gets to appoint three governors this year and two (including the chair) next year. By those appointments he will unquestionably be able to sway monetary policy through much of his first term as President.

I have argued in recent months that a tax-cut and spend administration really needs the benefits of a weaker dollar and an accommodative central bank. Despite his beefs with Janet Yellen, he actually might be looking for more doves of her ilk. In fact, I wouldn’t be surprised in the least if he asked her to stay on!

The best way to weaken the dollar is to dash the notion that U.S. central bank policy is diverging from the accommodative stances of all the other major central banks. Mr. Trump could get that all rolling simply by his appointments to the Fed. And that could be very positive for gold.

Posted in Daily Market Report, Gold News, Gold Views |

Grant Williams 2016 Mines & Money Presentation: Get It. Got It? Good.

Things That Make You Go Hmmm…/Grant Williams/02-07-17

Grant Williams posted his presentation from the Mines & Money Conference in London in December 2016. It is a compelling look at the ongoing demise of the petrodollar and the implication for the broader markets, and in particular gold.

ZeroHedge says: Williams focuses on gold’s performance in 2016, the reaction to Donald Trump’s election and joins a series of dots that may lead to the end of the petrodollar system and a new place for gold in the global monetary system.

If you are an oil producing country, do you…:

MINIMIZE your production in order to MAXIMIZE your holdings of one of the most abundant and easily-produced commodities in the world—U.S. treasuries—as has been the case for the last 40 years… knowing full well that, with the level of entitlements due in the next decade, more will need to be printed like crazy?

Or……

Do you MAXIMIZE production in order to gain the largest possible market share in the biggest oil market in the world and, through the ability to buy gold for yuan, thereby maximize your reserves of a scarce, physical commodity which is impossible to produce from thin air and which happens to be not only the most undervalued asset on the planet, but is trading at its most undervalued relative to U.S. treasuries in living memory?

I can almost imagine everyone in Williams’ audience texting their gold brokers with orders to buy! This is 30-minutes that are well worth your time.

Posted in Gold News, Gold Views |

Paul Mladjenovic: Gold isn’t done climbing (and apparently neither is silver)


MarketWatch/Myra P. Saefong/02-09-17

Gold typically has an inverse relationship with the stock market but I believe this will change under Trump. I think that gold and quality stocks have a strong chance of both hitting new highs in due course.

Gold will go from being a “safe harbor” asset (financial/economic crisis) to an inflation hedge (too much spending/stimulus). As Trump spurs economic growth, this can ease some of the prior issues with potential crisis and replace the issue with expansive spending and trade competition, which can mean a weaker dollar and rising inflation. With rising inflation and economic growth, stocks and gold would have a bullish environment while it would become a bearish environment for the dollar.

…I believe that it will be a great year for precious metals. For reasons cited, I expect gold to go north of $1,300 later this year and I believe that silver should hit $25 before year-end. Because silver is experiencing another supply/demand deficit year, it has an outside chance of surpassing $40 in 2018.

Posted in Gold News, Gold Views, Silver News, Silver Views |

Gold retreats as Trump tax pledge lifts dollar

Reuters/Jan Harvey/02-10-17

Gold fell on Friday, retreating further from this week’s three-month high, as U.S. President Donald Trump’s promise of a major tax announcement boosted the dollar and upbeat data fuelled talk of a near-term rise in U.S. interest rates.

…The dollar reached a 10-day high against a currency basket on Friday and was on course for its best week since mid-December as Trump’s pledge to announce a major tax plan within weeks cooled some market nerves, reinvigorating dollar bulls.

“Obviously the dollar has recovered a bit of strength in the past day or so, which has weighed on precious metals,” Mitsubishi analyst Jonathan Butler said.

Posted in Gold News, Gold Views |