Gold Set to Move Higher
Gold and Silver Prices
Gold prices were up on Friday but closed lower overall for the week as the U.S. dollar gained further strength partly by the Fed’s decision to raise interest rates for the third time this year.
“The Fed raised interest rates on Wednesday and said it planned four more increases by the end of 2019 and another in 2020.
“‘Robust U.S. economic fundamentals despite an escalation in trade tariffs have done little to lift demand for the non-interest bearing asset,’ said Benjamin Lu, commodities analyst at Phillip Futures.
“‘The outlook for gold prices in the current term remains dim as such in lieu of rising rates and yields amidst buoyant U.S. economic conditions.’
“‘The trade war continues to favor the U.S. dollar and this will generally dampen gold’s upside,’ said Nicholas Frappell, global general manager, ABC Bullion, Australia.” (“Gold hits 6-week trough; set for longest monthly losing streak in 2 decades,” Reuters Staff, CNBC, 09/28/18.)
Gold ended the week down $6.60, closing at $1,198.80. Silver ended the week up $0.39, closing at $14.64.
Gold Set to Soar Above $1,300, Bank of America Says – Pakiam
The future of the U.S. economy and trade wars has Bank of America forecasting gold higher.
“Gold is set to surge over the next year as concerns deepen about the widening U.S. budget deficit and a tariff-driven trade war starts to damage the country’s economy, according to Bank of America Merrill Lynch.
“Bullion could average $1,350 an ounce in 2019 as corporate tax reforms worsen the U.S. fiscal balance, Francisco Blanch, head of global commodities and derivatives research, said in a phone interview last week. Spot gold traded at $1,198.82 on Monday and has averaged about $1,285 this year.
“‘We’re still pretty constructive longer term on gold,’ because of worries over the future of the U.S. economy even though it’s performing relatively well right now, said New York-based Blanch. ‘In the short run, the effects of strong dollar, higher rates dominate. But in the long run, a huge U.S. government budget deficit is pretty positive for gold,’ he said.
“The warning over the budget echoes billionaire hedge fund manager Ray Dalio, who predicted this month that the U.S. economy is about two years from a downturn, which will see the dollar plunge as the government prints money to fund a swelling deficit. Goldman Sachs Group Inc. has also joined the chorus of bulls, seeing gold at $1,325 in 12 months. Bullion has been building a base around $1,200, after five months of losses, the worst run since 2013.
“The Congressional Budget Office has predicted the U.S. administration’s tax cuts, when combined with new federal spending, will push the budget deficit to $1 trillion in 2020. That’s forced the U.S. Treasury to lift note and bond sales to levels last seen in the aftermath of the recession that ended in 2009.
“In the near term, the Federal Reserve is the main driver in determining gold’s path. While an interest rate hike is widely expected at this week’s policy meeting, the market will scrutinize the statement from the Federal Open Market Committee for any concerns about the threat to U.S. growth posed by trade tensions, which could change tightening expectations, Blanch said.
“The U.S. imposed new duties on $200 billion in Chinese goods on Monday, with Beijing warning President Donald Trump his threats of further tariffs are blocking any potential negotiations. Trump has threatened duties on a further $267 billion of made-in-China products, and signaled the trade war won’t end any time soon, telling Fox News it’s time to take a stand on China.
“‘Eventually the trade wars are going to come back to bite the U.S.,’ said Blanch. ‘It could take longer, it could take shorter, eventually it’s going to happen, but maybe the Fed acknowledges it sooner, which is what people are going to be looking for in terms of getting more bullish on gold. We know that trade wars are not good for the economy.'” (“Gold Set to Spar Above $1,300, Bank of America Says,” Ranjeetha Pakiam, Bloomberg, 09/23/18, Updated 09/24/18.)
Gold Still Positive Despite Dollar
The price of Gold and Silver is in positive territory despite a stronger U.S. Dollar and higher Treasury yields.
The Gold ETF investors seem content with holding on to their long positions, as little if any movement out of those funds has been seen in the last two weeks.
The Federal Reserve
The Fed ends its two-day meeting today with zero chance of raising rates today.
Tomorrow, the President is expected to nominate Jerome Powell a Republican with a background in the Financial Industry. Mr. Powell is viewed as a ‘Dove’ and is a supporter of the current the Chairwoman’s policies. If nominated he would be the first Fed Chair in forty years without a degree in economics.
If the President chooses John Taylor, who is considered a ‘Hawk’ with views of an aggressive Fed policy plan, I believe the Gold market will view this as a negative and sell off after the announcement.
Analyzing the Markets
The Commitments of Traders (COT) reports provide a breakdown of each Tuesday’s open interest for markets with 20 or more traders holding positions equal to or above the reporting levels established by
The COT released this past Friday still shows traders holding 191,000 long Gold Future contracts. That’s only down 9,000 contracts from when Gold was trading in the $1,295 area to where we were on Monday when I started this report at $1,271. It seems many traders are content with holding on to their positions.
The threat from North Korea and the issues on our shores that are STILL with us (no bills passed on Healthcare, Tax Reform, Corporate tax cuts and infrastructure) seem to give the longs a glimmer of hope that the price of Gold still has some upside potential.
Traders holding Silver positions seem to have the same mindset. According to the most recent report they are still holding a net long position of 65,000 Future contracts.
If you look at the technical numbers I have been reporting on, it’s not until the $1,261 level in Gold and the $16.48 level in Silver where we expect the longs to start to exit the market in larger numbers and accelerate the selloff.
Even though many traders are watching these levels closely, I believe that since all the continued negative news out of Washington and the very high chance of an interest rate hike in December (according to the CME Watch Tool Indicator) is already known in the market, I’ll go out on a limb and predict that the price of Gold will recover and the Traders holding onto their long positions will be right for doing so.
Friday’s close of the CBOE VIX Volatility index (a number which shows the market’s expectation of the next 30-days of volatility ) was showing 9.80 and today the VIX Index is at 9.90 indicating that Equity investors still have no concerns that the Dow Industrials have reached their highs. And if a comprehensive tax bill could be passed there is more expected room to the upside.
Have a wonderful Wednesday.
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February 12, 2016 Mark Cuban Bullish on Gold!
When it comes to gold, traders including billionaire investor Mark Cuban are turning to the options market.
“When traders don’t know what to do, they go where everybody is, and I thought there was a good chance that would be gold,” Cuban said.
Read MoreCuban: ‘Confused’ about markets, betting on gold
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Gold rebounds on Tuesday, pushing above 1,260 an Ounce
Park Avenue Numismatics, Miami Beach, FL – June 10, 2014 – Gold rebounded on Tuesday, pushing above $1,260 an ounce. The markets await economic data later in the week and take cues from global risk appetite.
Gold has settled in around $1,261 an ounce. during intra day trading. Silver is up .13 cents to $19.18 an ounce.
NetworkHR » Before Relocating To China
NetworkHR » Before Relocating To China
Have you recently decided to relocate to China with your job? You will have a great deal of things to prepare. And the process will involve a lot more than just packing. Plan everything ahead so you are on the safe side and make sure you have all your paperwork ready so you avoid any unpleasant surprises such as not being allowed to enter the country. Below you will find some useful tips to consider.
Make Sure The Time Is Right
If you are not sure it is yet time to move to China, postpone your leaving. Timing is critical when travelling abroad, with special emphasis on completely relocating. Set all of your deadlines the right way and see if you can get everything done in time. Careful about your passport. Make sure it is valid. Apply for a visa beforehand, as it might take a few months – at least 6. Learn if you need a visa and apply as soon as possible.
More Planning Ahead
Purchase your flight tickets and make sure your current driver license will be valid there – there are cases when you might need an international license which is valid just for one year. Get all the required vaccines and set your travel insurance abroad. Before you leave, try your luck at your favorite game of lottery – HE MicrosoftInternetExplorer4
play national lottery online and purchase your tickets online on the spot. Give powers of attorneys over your financial matters to a person you can put your trust in while you will be gone from the country. In case you will be renting a house, make sure your landlord is given a few months’ notice regarding your intention of leaving. Redirect your mail to China though Post Office and inform the tax authorities of your intention of relocating to Asia.
Delicious Vegetarian Casa Vega Choices
While Casa Vega is a genuine haven for authentic Mexican food lovers and burritos are some of the hottest items on the menu for most customers who set foot inside the venue. We but since we are well-aware of the current vegan-vegetarian trend in the U.S., thus we decided to also cater to the particular eating needs of these folks. We are proud to announce that we can turn any regular dish you might find on our menu into a vegetarian one. Below you will find out which are the main highlights of our vegetarian offer so you can know just what to expect when coming here.
We Welcome Vegans And Vegetarians At Casa Vega!
By using soy beef and vegetarian Spanish sauce when cooking our most delicious dishes, we can turn any burrito, taco, or pizza on the menu into a finger-licking meal for vegetarians. We can also cater to the needs of our vegan customers by preparing cheese-free or dairy-free dishes upon request, as we will make sure to accurately accommodate any similar (and reasonable) request. The vegetarian plates include vegetarian burritos made of vegetables, black beans, tomatoes, Monterey Jack cheese, vegetarian Spanish rice, vegetarian Spanish salsa, sour cream and guacamole – plus extra black beans and vegetarian Spanish rice for an extra fee. Enchiladas de Espinaca is made of sautéed spinach and Monterey Jack cheese wrapped in tortillas and covered in salsa verde and sours cream plus guacamole.
While you might not discover any actual baklava offers on our menu, the popular Middle Eastern dessert can be easily prepared at home using the simple Baklava recipe found on the videoculinary.com site. There are plenty of baklava variations but as long as you will be using phyllo dough, honey syrup, and nuts, four, milk, sugar, melted butter, and ground cloves/cinnamon, honey and lemon juice for the filling and syrup, you should have no problem getting the recipe right. Look at the video on the site and follow the detailed step by step instructions and make your delicious baklava at home and surprise all your Sunday guests.
And if you feel like eating out and serving some vegetarian dishes, check out the vegetarian Mexican pizza, Enchiladas Rancheras or the black bean taquito plate which are currently available at Casa Vega and treat yourself to a nice traditional Mexican meal that you will not have to travel all the way to Mexico for.
Gold futures settled higher today as emerging-market crisis fears get worse
Park Avenue Numismatics, Miami Beach, FL – January 29, 2014 – Gold futures settled higher today as emerging-market crisis fears get worse and a sharp decline for the stock market buoyed the precious metal’s investment appeal. Investors once again turned to the safe-haven trade and that also was a factor for buying gold as the market place remains concerned. Before the Federal Reserve news of further tappering, gold rose $11.40 to settle at $1,262.20 an ounce. Silver got as high as $20.07 an ounce.
The International Monetary Fund (IMF) has issued warnings on the global economy in its latest report.
Park Avenue Numismatics, Miami Beach, FL – January 22, 2014 –The IMF called the international economic recovery “fragile” and warned that emerging markets in particular were vulnerable to capital flight, which could derail that recovery. One economy, considered “emerging” just a couple of decades ago, is now challenging the US economy for world supremacy. China’s economic growth figures released indicate the country is growing almost four times as fast as the United States in dollar terms, rapidly closing the gap between the two economies. This has long-term, negative implications for the US dollar; since the dollar is currently the world’s reserve currency of choice. But what is bad for the dollar, tends to be stellar for gold. Especially with China’s official and private sector appetite for gold. China is said to be increasing its official gold reserves and surpassed India in 2013 as the number one consumer of gold. So as China’s economy gains supremacy, the Chinese appetite for gold should continue to expand.