Tag Archive: trade

The Inflationary Effects of a Trade War

Recent dollar strength, stronger stocks and overall robust appetite for risk have all weighed on gold in recent weeks. Despite these headwinds, however, the yellow metal has not succumbed to any significant selling. All of the issues potentially weighing on gold prices currently are likely temporary. Stocks will probably not continue to go up indefinitely, the dollar is likely to roll over again and there will come a point when risk aversion is a major market theme. There is another major issue, however, that is... Continue Reading

The Dollar is Getting Weaker

Gold is seeing prices pop on Wednesday, as the dollar index declines to a 4.5 month low. The dollar index appears to have put in a long-term top at this point, and looks both fundamentally and technically weak. This weakness could potentially send the greenback even lower-dramatically lower-from current levels. The buck is seeing selling pressure today as Treasury Secretary Steve Mnuchin talks about how a weaker dollar is beneficial for the U.S. economy. His comments were made in Davos, Switzerland, at the World Economic... Continue Reading

Uncertainty on the Rise

Stocks got off to a lousy start this week, as investor anxiety over Trump’s immigration ban as well as corporate earnings is on the rise. The recent actions taken by the Trump administration could be just the first of more to come, and could potentially divide the nation further. The Trump administration recently put a ban on immigration from several primarily-Muslim countries and also put a 120 day hold on the U.S. refugee program. The actions drew immediate praise from some, and immediate disgust from... Continue Reading

Don’t Focus on the Short-Term

Right now may be a great time to buy gold or add to existing holdings. After trading at two-month highs recently, gold has backed off slightly as some profit taking is likely seen and as global stock markets continue their ascent. The recent sideways trade in the dollar has also likely given gold a boost, and it remains unclear if the yellow metal will attempt to challenge the highs seen following the Trump election victory. When it comes to investing, we are of the opinion... Continue Reading