Posts On Economic and Geopolitical News

Fed Still on Track to Cut

The highly anticipated jobs report for August showed the U.S. added just 130,000 jobs, a significant downside miss from expectations for 150,000 new jobs added. The unemployment rate was steady at 3.7 percent. This figure looks especially weak compared to the ADP employment report released earlier in the week, which showed a gain of 195,000 jobs when market expectations were looking for 140,000 jobs. The jobs data falls into the camp of the policy doves who want to see further rate cuts. The Fed will... Continue Reading

Don’t Wait Any Longer

In early action on Tuesday, the gold market is once again on the offensive and moving higher. As the Dow Jones Industrial Average see a drop of nearly 400 points, the yellow metal is up nearly $15 per-ounce. A test of resistance in the $1600 region looks very likely in the sessions ahead. With stocks potentially on the verge of a major meltdown and gold potentially headed back to all-time highs or beyond, you simply cannot afford to wait any longer. The time to start... Continue Reading

Central Banks Are Still Buying

The recent central bank buying spree looks set to continue. It was reported that Russia’s central bank purchased another 300,000 ounces of gold in July after topping the $100 billion reserve level the month before. The latest figures reportedly show Russia’s gold reserves now stand at nearly 20 percent of its total reserves. The nation has purchased nearly 3.5 million ounces so far this year and has been a consistent buyer on a monthly basis. Russia’s gold reserves have now increased nearly 10-fold over the... Continue Reading

The Case for Gold Has Never Been Stronger

The last few days have shown what can happen as investors get nervous and even start to panic. Yesterday’s declines in equity markets, which were over 3 percent, were the largest drop so far this year and showed just how seriously investors are taking the ongoing U.S./China trade war. the case for gold has never been stronger. As President Trump implements additional 10 percent tariffs on another $300 billion of Chinese goods, China has responded by devaluing its currency. The yuan moved past the key... Continue Reading

A Busy Week Ahead

The gold market is slightly higher in early action Monday as the markets await several key pieces of economic data. Highlights of the week will include the conclusion of the Federal Reserve meeting Wednesday, the latest non-farm payrolls data due for release Friday and any developments from trade talks taking place in Shanghai. The Fed is widely expected to cut its key interest rate by 25-basis points at the conclusion of its two-day meeting on Wednesday. Market expectations for a 50-basis point cut had dwindled... Continue Reading

A Lot Going On

Stocks have been on the rise in recent days as investors look forward to a rate cut by the Fed at the end of the month. Although expectations for a 50-basis point cut have declined significantly, such a move may still be on the table. If the Fed decides to cut by 25-basis points, that cut could be just the first in a series of cuts the Fed may have to make in the months ahead. Regardless of what the Fed does or doesn’t do,... Continue Reading

6-Year Highs Just the Beginning

The gold market recently powered to a 6-year high as the notion of a dovish Fed and easy money policies gained further steam. The market saw a buying frenzy take prices straight to the $1450 region, a level which, if breached, could signal a much more significant upside rally. The market may simply be getting started in the early stages of the next great bull market which could take prices back to all-time highs near $2000 per-ounce and well beyond. There are numerous factors that... Continue Reading

Central Banks Keep Buying

Global central banks have continued to keep buying gold, adding even more of the metal to their portfolios in June. The month reportedly saw reserves climb by 8 percent, the largest monthly increase in three years, as trade and geopolitical tensions heated up. Countries such as Kazakhstan, Russia and Turkey all added more of the metal to their reserves, while China also previously reported another large increase in its holdings. The recent trend in additions could be set to continue, especially against the current backdrop... Continue Reading

All Eyes on the Fed

This week features the release of the latest FOMC meeting minutes as well as testimony before Congress by Fed Chief Jerome Powell. The minutes will be released on Wednesday, while Powell’s remarks will begin Wednesday and conclude Thursday. The latest meeting minutes will likely take a back seat to Powell’s comments, and investors are hoping that the Fed Chief will provide some clarity about the central bank’s plans regarding rates going forward. Expectations for an interest rate cut have been dialed back in recent days... Continue Reading

Are Stocks Making a Bull Trap?

The benchmark S&P 500 hit a fresh all-time record today. Stocks and risk appetite are on the rise as investors remain hopeful that a U.S./China trade agreement will be reached. Over the weekend, President Trump met with Chinese Leader Xi Jinping at the G20 meetings in Japan, and the two leaders essentially called a truce. The U.S. agreed not to raise levies on additional Chinese goods, while China reportedly agreed to purchase more U.S. agricultural products. With the two sides seemingly back at the bargaining... Continue Reading