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drbubb

DrBubb's Diary - July 2018 Trading - v.114

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Top of Page Charts (Odd) : Channel-GE : MP : PP : Charts : Acore : Fringe : Ag B E G H :

t24_au_en_usoz_6.gif : 24hr-euro-small.gif : t24_au_en_euoz_2.gif : AuTD1.png?id=11409261605

idx24_russell_en_2.gif : t24_ag_en_usoz_2.gif:: idx24_hui_en_2.gif : AgTD0.png?id=11409221912

3d : ag : au / Btc / 8yr: 12mo : 5m : 2m : 1m : 25 10 5d 2d / spiral

Goldstock : HK-2840 : GBS.L : GLD : GDX : NUGT : tza/faz -- HKpeg : DXY : StkX : 10-d : SPX : sjw : img :

HK 3081: 2899: 1051: hs / UK: POG / ABX : Sil : IAG : dba-etc. ... lot : PB : CVN : CC2 : BTC 1m 2d : SLV-lv

==========================================

OUR SITUATION looks much more hopeful now

... than it did Four Years ago, in the Middle of Obama, Part 2

America After the Coup pt1: Leader of the Decaying World

 

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Weekly DATA - Gold's erosion continues. DBA steady (for a change). BTC Up

==== : Fye'16 : Fye'17 : +-%chg :   03/29  :  04/27 :  06/01 : 06/29 :   07/06 :  07/20 :  07/27 :
Gold : 1151.7 : 1309.3 : +13.7% : 1327.3 : 1323.4 : 1299.3 : 1254.5 : 1255.8 : 1231.1 : 1223.0 : - 0.7%
GLD- : 109.61 : 123.65 : +12.8% : 125.79 : 125.50 : 122.49 : 118.65 : 118.86 : 116.56 : 115.83 :
SPY- : 223.53 : 266.86 : +19.4% : 263.15 : 266.56 : 270.94 : 271.28 : 275.42 : 279.86 : 281.43 :
SPX- : 2238.8 : 2673.6 : +19.4% : 2691.3 : 2640.9 : 2669.9 :2718.4 : 2759.8 : 2801.8 : 2818.8 :
Sp/Au 194.4%: 204.2%: ====== : 219.0%: 201.7%: 210.5%: 216.7%: 219.8% : 227.6% : 230.4% :
XLE : $75.32 : $72.24 : -4.09%: $67.41: $73.82 : $76.38 : $75.94 : $75.67 : $74.89 : $76.63 :
WTIc: $53.72 : $60.42 : +12.4% : $64.94 : $68.10 : $65.81 : $74.15 : $73.80 : $68.26 : $68.69 :
Au/Wt:  r-21.4 :  r-21.7 : ====== : r-20.44 : r-19.43 : r-19.74 : r16.92 : r-17.02 : r-18.04 : r-17.80 :
Ngas: $3.350 : $2.950 : - 11.9% : $2.730 : $2.770 : $2.960 : $2.920 : $2.880 : $2.760 : $2.780 :
Cop'r: $2.510 : $3.305 : +31.7% : $3.030 : $3.050 : $3.100 : $2.970 : $2.820 : $2.760 : $2.800 :
Weat : 408.00 : 426.25 : +4.47% : 451.00 : 498.50 : 523.12 : 501.25 : 515.25 : 516.00 : 530.50 :
Corn : 352.00 : 350.75 : - 0.36% : 387.75 : 398.50 : 391.50 : 371.25 : 373.00 : 369.00 : 376.25 :
CRB- : 192.51 : 193.86 : +0.07% : 195.36 : 201.39: 201.71 : 200.39 : 198.05 : 192.62 : 194.16 :
DBA : $19.97 : $18.76 : -6.06%: $18.18: $19.22: $19.14 : $18.03: $17.91: $17.44 : $17.47 : +0.2%
D/crb: 10.37% :  9.67% : ====== :  9.31% :   9.54% :  9.49%  :  8.99% :  9.04% :   9.05% :  9.00% :
Xle/D: r-3.770 : r-3.850: +2.14%: r-3.707 : r3.841 : r-3.990 : r-4.212 : r-4.121 : r-4.294 : r-4 386 :
DXY- : 102.38 : $92.30 : - 9.85% :: $89.81 : $91.53 : $94.16 : $94.47 : $93.97 : $94.30 : $94.67 :
TLT- : 119.13 : 126.86 : + 6.49% : 121.90 : 118.89 : 120.30 : 121.72 : 122.75 : 120.76 : 119.46 :
====
Gold : 1151.7 : 1309.3 : +13.7% : 1327.3 : 1323.4 : 1299.3 : 1254.5 : 1255.8 : 1231.1 : 1223.0 :
Au/hd: r1.401 : r1.58E : ====== : r-1.569 : r-1.519 : r-1.55E : r-1.532 : r-1.565 : r-1.54E : r-1.528 :
Hold : 822.17 : 830.00 : +01.0% : 846.12 : 871.20 : 838.EE  : 819.04 : 802.24 : 800.EE : 800.20 :
WPM : $19.32 : $22.27 : +15.3% : $20.37 : $21.35 : $21.91 : $22.06 : $22.68 : $21.31 : $20.94 :
GDX- : $20.92 : $23.24 : +11.1% : $21.98 : $22.73 : $22.31 : $22.31 :$22.61 : $21.78 : $21.32 :
Gdxj : $31.55 : $34.13 : +8.18% : $32.15 : $33.03 : $32.80 : $32.70 : $33.50 : $32.09 : $31.92 :
SIL - : $32.11 : $32.64 : +1.65% : $30.72 : $30.94 : $30.54 : $28.88 : $29.45 : $28.09 : $27.53 : - 2.0%
/SLV: R2.053 : R2.042 : - 0.54% : R1.994 : R1.987 : R1.978 : R1.910 : R1.953 : R1.925 : R1.89 :
SLV- : $15.64 : $15.98 : +2.08% : $15.41 : $15.57 : $15.44 : $15.15 : $15.08 : $14.59 : $14.57 : - 0.1%
Silvr : 16.580 : 17.150 : +3.44% :  16.268 : 16.500 : 16.440 : 16.200 : 16.070 : 15.550 : 15.490 :
PHM: $18.38 : $33.34 : +81.4% : $29.49 : $31.06 : $30.36 :  $28.75 : $29.31 : $31.11 : $28.13 :
EEM- : $35.01 : $47.30 : +35.1% : $48.28 : $47.26 : $46.33 : $43.33 : $43.41 : $43.96 : $44.69 :
ShCm: 3103.7 : 3307.2 : +6.56% : 3168.9: 3082.2 : 3075.1 : 2847.4 : 2799.8 : 2829.2 : 2873.6 :
PhpSi: 6840.6 : 8558.4 : +25.1% : 7979.8: 7721.0 : 7630.3 : 7193.7 : 7180.8 : 7399.6 : 7701.4 :
XLF-  : $23.25 : $27.19 : +16.9% : $27.57: $27.70 : $27.48 : $26.59 : $26.67 : $27.56 : $28.13 :
IWM- : 134.85 : 152.43 : +13.0% : 151.83: 154.60 : 163.84 : 163.77 : 168.25 : 168.48 : 165.26 :
F/iwm 0.1724 : 0.1784 : =====  : 0.1816 : 0.1791 : 0.1677 : 0.1624 : 0.1585 : 0.1635 : 0.1702 :
BTC-- : $948.5 : 13,100 : x13.8X : $7,401 : $9,230 : $7,432 : $5,883  : $6,564 : $7,463 : $8,143 : + 9.1%
==== : Fye'16 : Fye'17 : +-%chg :  03/29  : 04/27 :  06/01 :   06/29 :  07/06 :  07/20 :  07/27 :

DBA vs. SLV /(Agri.etf vs. Silver etf) ... update fr. 2.14.2017 :

QDH3eQv.gif

update fr. 5.14.2015 :

zVPs68V.gif

update fr. 5.24.2013 :

cS8YCgM.gif

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If there really is a "TRUMP INSURGENCY" (MAGA?)

SPY (etf for S&P500) vs GAF stocks ... update

lLRrNZf.gif

then taking down or co-opting the Silicon Valley giants (& their leftwing globalism) is likely to be part of it

trumprevolution.jpg

> https://medium.com/deep-code/situational-assessment-2017-trump-edition-d189d24fc046

The Trump Insurgency : Situational Assessment

I want to focus specifically on the victory of the “Trump Insurgency” and drill down into detail on how this state change will play out.

the election of 2016 was not an example of “ordinary politics”.... the only real pattern I can find is the 1776 “election” (AKA the American Revolution). In other words, while 2016 still formally looked like politics, what is really going on here is a revolutionary war. For now this is war using memes rather than bullets, but war is much more than a metaphor.

This war is about much more than ideology, money or power. Even the participants likely do not fully understand the stakes. At a deep level, we are right in the middle of an existential conflict between two entirely different and incompatible ways of forming “collective intelligence”. ..... So I’m going to ... walk through a series of “fronts” of the war that I see playing out over the next several years.

Front One: Communications Infrastructure.

.... the first step of any conflict is to disrupt the enemy’s communications and control infrastructure.

Our legacy sensemaking system was largely composed of and dominated by a small set of communications channels. These included the largest newspapers (e.g., NYT and Washington Post) and television networks (e.g., CNN, CBS, Fox, etc.). Until very recently, effectively all sensemaking was mediated by these channels and, as a consequence, these channels delivered a highly effective mechanism for coordinated messaging and control. ...

..... Rather than endeavoring to establish control over the legacy infrastructure, the Trump Insurgency is in the process of destroying it entirely and replacing it with a very different architecture. ....

....They are simultaneously attacking the legacy power structures on multiple fronts (access, business viability and, in particular, legitimacy) while innovating entirely novel approaches to the problem of large scale communications and control (e.g., direct tweets from POTUS). ...

.... The Trump Insurgency .... form of governance is structurally incompatible with the legacy media architecture. It is intrinsically dissonant with the kind of top-down, slow, controlled, synchronized approach of the old media. It therefore both must dismantle this architecture and replace it with one that is in synch with its mode of operation and, thereby, benefits massively by hamstringing any collective intelligence that works in the old top-down fashion (i.e., all existing forces currently at play).

 I fully expect the Insurgency to win this fight. .... I expect the memetic efficacy of the New York Times, CNN, the Washington Post, MSNBC and related channels to be near zero within the next two to four years. I would not be surprised to see several of these entities actually out of business.

... the relative position of “new media” such as Twitter, Facebook and YouTube is harder to predict. I suspect that most of the important conflict of this front will take place here. Right now, all of new media is controlled by forces broadly opposed to the Insurgency. Yet the Insurgency must establish dominance on this territory. They can accomplish this either by capturing these existing platforms (aka “bend the knee” capitulation) or by moving the center of power to new platforms that are aligned with the Insurgency (e.g., gab.ai replacing Twitter).....

... the decisive decision... is whether the “new media” remain coupled to the legacy power structures .... or decouple and enter into a direct conflict for “decentralized supremacy” .... If they choose the former, they will lose. If they choose the latter, the outcome is hard to predict.

Front Two: The Deep State

In ordinary politics, an elected candidate is expected to integrate with and make relatively small fine-tuning changes to the existing state apparatus and the mass of career bureaucrats that make up most of the actual machinery of government (AKA the “deep state”). ....

.... the Trump Insurgency has identified the Deep State itself as its central antagonist and is engaged in a direct existential conflict with it.

Normally this would be an easy win for the Deep State. .... The Deep State is massive, has access to vast resources and capabilities and has been in the business of controlling power for decades. But two things are moving in the Insurgency’s favor.

First, the Deep State appears to be fragmented. For example, the “Russian Hacking” scenario of the past two months looks surprisingly uncoordinated and incompetent. .... it is clearly not the product of a unified and smoothly operating Deep State.

Second, it seems highly likely that the Deep State is prepared to fight “the last war” while the Insurgency is bringing an entirely different kind of fight....

Let’s take a look at the “fake news” meme for example. This has all the earmarks of a Deep State initiative. .... this was a Deep State response to the Communications Infrastructure fight. But it looks like this initiative has not only failed, but that the Insurgency has been able to ... to turn the entire thing around and make “fake news” its own tool. ..

.. the balance of the struggle ... will be determined by how quickly the Deep State can dispense with old and dysfunctional doctrine and innovate novel approaches...

.... the Deep State would be ill advised indeed to undertake any major efforts in the next 12–24 months....

... the Insurgency would be well advised to Blitzkrieg. Right now it has the advantage of an approach and a model that its opponent doesn’t understand and can’t react to effectively. .....

Front Three: Globalism

... if Trump clearly stood for anything, resisting the “false song of globalism” was it. ....

What is flat out astounding is the relative ease with which Trump has been able to cut through globalist Gordian Knots. For half a decade, the Trans-Pacific Partnership was an unstoppable juggernaut. Until, that is, Trump decided to end it. ....

... it is a significant victory and I am certain that it will embolden the Insurgency. At this point, I expect the Insurgency to cut deep into globalist power institutions (the World Bank, the UN, various treaty organizations) and, ... globalist-allied national institutions like the Federal Reserve. ...I see only two real moves available to the globalists. 1) economic destabilization hoping to turn “the people” against the Insurgency; 2) some kind of social/military destabilization.

But I don’t give the globalists much of a chance....

...Notably, even large multi-national corporations  ...seem to be rapidly capitulating to the Insurgency. The two major globalist forces that have not yet been publicly tested are the energy companies and the banks. What will happen here remains to be seen. ... The net-net result of this front will be a significant weakening of the post-War global institutional order and a rebalancing of power along ... nationalist alignments. ...

more at link

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Golden Valley vs. Abitibi Royalties / GZZ owned 51% of RZZ in 2015 : d#1 : m#2 :

RZZ-etc w/ GZZ.v ... from Beg. 2016 :

DCFBSAh.gif

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KITCO articles

Gold Prices Steady; Central Bank Meetings, U.S. Data Loom Reuters

Gold futures closed lower on the week, losing value for the third consecutive week. More foreboding is the fact that not only has gold closed at the lowest value this year, but the last time gold futures closed near this level was almost a year ago.

7_27_18_c1.png

During the week of August 26, 2017, gold futures closed at $1,210 an ounce, and then opened at $1,211 the first week of July 2017. Gold would gain value up until September 2017, when it reached its highest price value of the year, closing on a weekly chart at $1,351 after reaching a high that week of $1,362. Gold pricing would decline during the last quarter of 2017, until the week of December 11 which marked the beginning of a rally which would take gold pricing almost $130 higher.

Copper is on the verge of a major breakout, said Nick Mather, CEO & managing director of DGR Global.
“If you look at the price graph, and if you look at where copper demand is going, it’s going to break out,” Mather told Kitco News on the sidelines of the Noosa Mining & Investment Conference.
Mather cited labor problems in Chile, resource grades coming down, and increasing mining costs as tailwinds for copper price.
“We really like copper, that’s why went to the Andean copper belt,” he said

FUNDAMENTALS

* Spot gold was nearly unchanged at $1,222.68 an ounce at 0107 GMT.

* U.S. gold futures were about 0.1 percent lower at $1,222 an ounce.

* The dollar trod water against its peers on Monday, as market participants awaited key central bank meetings this week, which could set the near-term course for currencies.

* Central banks in focus include the Bank of Japan, which ends a two-day meeting on Tuesday, and the Federal Reserve, which concludes its policy meeting on Wednesday. The Bank of England also makes a policy decision on Thursday.

* Asian share markets drifted lower on Monday while currencies kept to familiar ranges ahead of a busy week peppered with central bank meetings, corporate results and updates on U.S. inflation and payrolls.

* U.S. President Donald Trump said on Sunday he would allow the federal government to shut down if Democrats do not fund his border wall and back immigration law changes, betting that maintaining a hard line will work in Republicans' favor in November congressional elections.

* The U.S. economy grew at its fastest pace in nearly four years in the second quarter as consumers boosted spending and farmers rushed shipments of soybeans to China to beat retaliatory trade tariffs before they took effect in early July.

* Euro zone inflation could accelerate faster than earlier thought, the European Central Bank's Survey of Professional Forecasters showed on Friday, underpinning the bank's decision to slowly remove stimulus.

* Japan's retail sales climbed more than expected in June due to increased spending on fuel, appliances and cosmetics, in a positive sign that households are growing more confident in the economy.

* Hedge funds and money managers increased their net short position in COMEX gold contracts to a record in the week to July 24, U.S. Commodity Futures Trading Commission (CFTC) data showed on Friday.

* Gold demand in India improved last week as local prices traded near a six-month low, prompting jewellers to replenish inventory, while weaker rates in Singapore saw demand pick up further there.

Bill Baruch, president of Blue Line Futures, said that although the GDP report showed robust growth, the market was already expecting a substantial number. He added that there are fewer factors in place that will continue to drive the U.S. dollar high and gold prices lower in the medium term.

Looking at gold, he said that the market is pretty much as bearish as it can get.

“Shorts are already positioned in gold and we think we are building a floor. We will continue to see limited downside risk for gold going forward,” Baruch said.

Maxwell Gold, director of investment strategy at ETF Securities By Aberdeen Standard Investments said also said that economic growth could struggle to maintain its current momentum. He added the current gold price is an attractive entry point for investors to build a strategic position.

“Gold is down but certainly not out,” he said. “The growth numbers we are seeing are common in late-stage economic cycles and I think gold will look attractive as investors worry about continued economic growth going forward.”

Gold Remains A Currency Trade; Watch The Yuan, USD

While optimism is building within the precious metals space as trade war fears weigh on future economic growth, the most significant unknown factor for investors remains currency markets, in particular, the Chinese yuan.

Recently, gold has seen a relatively high correlation to the yuan as the Chinese government has weakened its currency to combat U.S. trade policies. Many analysts have noted that further weakness in the Chinese currency will continue to weigh on gold; however, some are noting that even the yuan has its limits.

“There is potential for further yuan weakness, but even this trend is becoming exhausted,” he said.

 

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Chinese Yuan has been weak... along with Gold

CNY ... USD in Yuan ... All data :

aWJ3umh.gif

CNY -vsGLD ... update : 10d :

iPNoBIK.gif

: 10d :

uKVhbKv.gif

Why-is-china-s-currency-falling

 

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AFund / Astrology Fund (Henry Weingarten) likes Gold ... a lot !

AFund: The A stands for “Astrologers.” It’s run by an antic, charming 70-year-old named Henry Weingarten who says he gleans insight from charting the movements of celestial bodies. Today’s event isn’t technically about astrology, but like everything in the universe, it probably is. “Sixty to 70 percent of what I do is in the natural resource space,” Weingarten tells me after lunch at the club, holding a glass of red wine. “I think it’s because I’m a Leo. And effectively, as a Leo, I have an affinity for gold.”

  Reasons-why-gold-may-soon-be-ready-shine-again?

http://www.mining.com/wp-content/themes/Kessel/digests/common/assets/images/template/padding.gifWith Gold trading below $1250, and despite having short term negative astro, we continue to recommend Maximum Allocation or fresh precious metal investments for the  intermediate and long term, given that the precious metal sector is obviously undervalued!

Despite headwinds from US interest rates rising, happily, there will be less competition from MMJ & especially Bitcoin “investors” as time goes on.

$1400 remains an intermediate target for us. While seasonal strength will soon be upon us, unfavorable astro winds could last into October

Remember, we advise precious metal investors to pay attention to stock selection as a slowly rising tide does not float all boats equally.

·         Gold remains cheap geopolitical crisis insurance.

·         For investors who cannot or will not buy the $US currency as well as investors who wish to safely and cheaply hedge their US$ exposure, ONLY GOLD IS AS GOOD AS GOLD!

Gold FV $1390 = Commodity FV: 1334 + Currency FV: 1388 + Inflation Metal FV:1388 + Crisis FV: 1450.

Gold/Silver ratio à 69  Silver FV $20.

 

READER: What are your latest thoughts on Copper?

HW: We are on MAJOR buy for copper for next 18 months.

Remembers we said H2 2018 to 2019 Copper will outperform similar to our previous Oil forecast.

Patience will be WELL rewarded, especially after the Trade war is WON !

 

READER: Any bets on the midterm elections. Trump's chart is still good until Jan 3rd when Jupiter Saturn starts. Then lots of issues can occur. Then there is his attorney singing like a bird! ??

HW: Let me say Trump has a very positive November, December horoscope. Furthermore both the US and CHINA markets will benefit.  As for “secrets” revealed- October is the time.

 

READER: Nice piece. Still disagree with you on Bitcoin though.

HW: Many confuse smart contracts and blockchain which do have a positive future with Bitcoin which while having first mover advantage is far inferior to other cryptos. Sooner or later Investors will figure that out and if not in 2018, then my bet is in 2019.

How to predict the next market downturn

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Gold etf trading in HK

HK-3018 / Value Gold ... update : HK-2840 : UK-GBS : GLD :

I4CYFOE.gif

Frozen Gold chart : $1219.2 -4.00 : Updated Gold chart

: t24_au_en_usoz_6.gif

07/30/18:
99.99 Gold: 11600-11640 : 11620/ 1.21 = $9,603 / 7.849 =$1,224 (+$5 over spot?)
99.-- Gold : 11400-11440 : 11420/ 1.21 = $9,438 / 7.849 = $1,202 -$20 vs. 99/99
PaperGold: 1,139.5-1142.0 : 1141 x10: 11,410
> HS Bank: https://bank.hangseng.com/1/2/rates/gold-prices

Gold etfs :
HK-2840 ... update : $909.0 / $7.849 = $115.8 x 10.52 = $1,218.2 /
HK-3081 ... update : $29.70 / $7.849 = $3.784 x 322.0 = $1,218.4 /
========

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http://dailycaller.com/wp-content/uploads/2018/07/crossing-the-swamp-frames-1.jpg

Over 240 years ago George Washington crossed Valley Forge to bring an astonishing victory to the Continental Army. This led to what many thought was impossible — to defeat a despot King and his formidable army.

Today, Trump endeavors to cross the “swamp” of Washington DC as he carries the light of truth, hope, and prosperity. The murky water of the deep state is laced with dangerous vermin, perfectly willing to destroy American prosperity for their personal ideologies and financial gain. The establishment Democrats, Never-Trumper-Republicans, Deep State, and Fake News Media will do all they can to stop the majority of the American people from succeeding.

As an artist, I paint what I feel needs to be said about the current state of our country. I hope Trump is remembered as the President that restored America’s greatness. I want to be on that boat for freedom!

>http://dailycaller.com/2018/07/31/crossing-the-swamp-artwork-jon-mcnaughton/
 

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Trump popularity creeping higher

Tuesday, July 31, 2018

The Rasmussen Reports daily Presidential Tracking Poll for Tuesday shows that 48% of Likely U.S. Voters approve of President Trump’s job performance. Fifty percent (50%) disapprove.

The latest figures include 35% who Strongly Approve of the way Trump is performing and 43% who Strongly Disapprove. This gives him a Presidential Approval Index rating of -8. (See trends).

> http://www.rasmussenreports.com/public_content/politics/trump_administration/prez_track_jul31

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Fed Signals It Will Stay The Course, Resulting In Declining Precious Metals Gary Wagner

In a statement released following the conclusion of this month’s FOMC meeting, the Fed announced that Fed funds would remain unchanged. “In view of realized and expected labor market conditions and inflation, the committee decided to maintain the target range for the federal funds rate at 1-3/4 to 2 percent.”

However, they also signaled the need for further interest rate hikes. “The committee expects that further gradual increases in the target range for the federal funds rate will be consistent with sustained expansion of economic activity, strong labor market conditions, and inflation near the committee’s symmetric two percent objective over the medium term.”

gld801(3).png

Market participants seemed to position themselves well ahead of the report. Prior to the conclusion of this month’s FOMC meeting, gold pricing was under pressure with gold futures trading approximately six dollars lower. Also evident was a higher U.S. dollar as well as higher Treasury yields.

As of 3:30 PM Eastern standard time, gold futures are trading at the low of the day. The most active December contract is currently fixed at $1225.90, which is a decline of $7.70 on the day. Although the U.S. dollar is trading higher, gains are marginal, with the dollar index currently up 18 points and fixed at 94.46.

Spot gold is currently down $6.60, with only a fractional portion of that decline directly related to dollar strength. According to the Kitco Gold Index (KGX), today’s decline is dominated by selling pressure which is currently accounting for -$5.10, and the remaining -$1.50 is directly attributable to dollar strength.

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Fed Signals It Will Stay The Course, Resulting In Declining Precious Metals Gary Wagner

In a statement released following the conclusion of this month’s FOMC meeting, the Fed announced that Fed funds would remain unchanged. “In view of realized and expected labor market conditions and inflation, the committee decided to maintain the target range for the federal funds rate at 1-3/4 to 2 percent.”

However, they also signaled the need for further interest rate hikes. “The committee expects that further gradual increases in the target range for the federal funds rate will be consistent with sustained expansion of economic activity, strong labor market conditions, and inflation near the committee’s symmetric two percent objective over the medium term.”

gld801(3).png

Market participants seemed to position themselves well ahead of the report. Prior to the conclusion of this month’s FOMC meeting, gold pricing was under pressure with gold futures trading approximately six dollars lower. Also evident was a higher U.S. dollar as well as higher Treasury yields.

As of 3:30 PM Eastern standard time, gold futures are trading at the low of the day. The most active December contract is currently fixed at $1225.90, which is a decline of $7.70 on the day. Although the U.S. dollar is trading higher, gains are marginal, with the dollar index currently up 18 points and fixed at 94.46.

Spot gold is currently down $6.60, with only a fractional portion of that decline directly related to dollar strength. According to the Kitco Gold Index (KGX), today’s decline is dominated by selling pressure which is currently accounting for -$5.10, and the remaining -$1.50 is directly attributable to dollar strength.

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