Tag Archive: dollar

Has the Dollar Peaked?

The stronger dollar has likely been a major factor in gold’s lack of upside follow-through in recent months. The currency hit its highest level of the year last week but is seeing a mild pullback today in early action. The greenback’s strength is not really all that surprising – it has benefitted from concerns over global growth and interest rate differentials. The Dollar Is Near a Top… The dollar may be at or near a top, however, and could soon see a significant price reversal.... Continue Reading

Category |

Central Bank Demand for Gold Surging

Central bank demand for gold reportedly hit the highest levels in 2018 since the end of the Bretton Woods system of dollar convertibility in 1971. With some analysts referring to gold as some type of meaningless relic, this begs the question of why the biggest financial institutions on the planet are looking to acquire even more gold. Store of Value Gold has a very long history as a reliable store of wealth and value. In the post-Bretton Woods era and without a return to some... Continue Reading

Category |

Gold Rockets Higher Despite Stock Rebound

Gold is climbing sharply higher today as an improving technical posture, weaker dollar and disappointing data fuel buying interest. In what seems to be a recent trend, the latest reading on ISM manufacturing came in below expectations. Although the reading was still solid, the slightly lower gauge could potentially point to weakening economic growth. Other key data points in recent weeks have also shown a tendency to come in slightly below consensus estimates, and if the recent trend does continue it could start to raise... Continue Reading

Category |

Get Ready

The gold market is showing some significant strength today as the metal has once again moved back over the psychologically important $1200 level. It’s no secret that the dollar index has weighed heavily on gold in recent months, but there seems to be increasing concerns that the greenback is not likely to maintain its recent strength. With the recent Fed rate hike having come and gone, and with expectations of another hike before the end of the year already factored into prices, the gold market... Continue Reading

Bring on the Sellers!

The gold market has begun the new trading week on its back foot, as prices have slid below the psychologically important $1200 level. A lack of fresh, bullish catalysts combined with low summer trading volumes have given sellers a distinct advantage-for now. The dollar trade continues to be a thorn in the market’s side, with the greenback strengthening further as concerns over Turkey and potential contagion in the region increase. The Turkish Lira has been a major headliner in the financial media in recent days,... Continue Reading

Could the Market Be Readying for A Major Rally?

As the summer trading doldrums continue, the gold market has not seen much excitement. The market has, however, dipped down near the $1200 level on several occasions before snapping back by several dollars per ounce. The market seemingly has plenty of reasons to be testing the $1200 level and perhaps even breaking down below it, but thus far it has failed to do so. Could this be an indication of a bottoming process? Although things may not really begin to heat up again until next... Continue Reading

There Is Only One True Form of Money

There are numerous reasons to buy and hold physical gold. Of course, the potential for significant price appreciation is a major factor when investors make the decision to invest in gold. Although everyone likes the idea of buying low and selling high, the idea of a rising gold price is by no means the only-or even most important reason-to buy and accumulate physical gold. Of all the possible reasons to accumulate gold-such as to preserve purchasing power, to hedge against declining currency values and to... Continue Reading

Category |

Not So Fast

The U.S. Dollar has been on a tear in recent months, and is currently trading around a 12 month high. The strength seen in the currency in recent months has almost certainly been a major factor in gold’s recent lack of upside, and further gains in the greenback could keep the pressure on. The significant impact the dollar has had on the gold market is not likely to continue indefinitely, however, and once this trade reverses course the outlook for the metal could be extremely... Continue Reading

An Expanding Danger

As was anticipated, the Federal Reserve raised the key benchmark rate 25 bps to 1.75-2.00%. The central bank appeared to have a slightly more hawkish tone in its statement, and has made clear that it will hike rates twice more in 2018. The central bank did, however, stick with its previous forecast for three rate hikes next year. Although rates are not likely to get anywhere near levels seen in previous tightening cycles, they are expected to continue to rise gradually. The idea of higher... Continue Reading

Why Investors Must Watch the Dollar

After seeing months of lower prices, the dollar index has been on the rebound lately, trading at a 4.5 month high in recent sessions. The upside in the dollar has kept a bit of a lid on gold prices-for now anyway-and the relationship between the metal and the currency is a very important one to understand. Like many other commodities, gold is denominated in dollars. This means that when the dollar is higher in value, gold becomes relatively more expensive for buyers in other currencies.... Continue Reading