- Gary Christenson, The Deviant InvestorBubbles, like a cocaine high, are fun while they last. History confirms that bubbles and cocaine are enjoyable, because central banks blow many bubbles and the U.S. imports a large quantity of cocaine.Bubbles are fun, but they extract a price. There is no free lunch.Examples:2019: The Everything Bubble.It hasn't crashed yet, but there are many bubble pi...Read More
- Jordan Roy-Byrne CMT, MFTAIf you follow our work, you are aware of our growing optimism on gold stocks in 2020.As we've written, the fundamental setup in 2020 should be bullish for precious metals.Meanwhile, the technical setup for gold stocks is one of the best we've ever seen. Gold stocks (and GDX specifically) are consolidating in a bullish fashion within a nearly 7-year long base that,...Read More
Gold's post breakout reaction back from its early September peak has evolved into a steady downtrend as we can see on its 6-month chart below. The approach of the rising 200-day moving average below suggests that this reactive downtrend will have run its course before much longer leading to a second upleg. However, gold's COTs have shown no improvement as this downtrend has unfolded, which is a...Read More
By: Ira EpsteinI am bullish gold, but don't want $1,463 taken out. We are above 18-dma, $1,499.60 resistance area:Read More
There will be short covering and subsequent buildup of long positions if gold and silver rise today and tomorrow. There was no surprises in FOMC meet. Now the focus will shift to European central bank meeting, impeachment news related to Trump and UK elections and the key trade deal. Fed Chairman Jerome Powell said the economic outlook for the U.S. was favorable as the central bank announced its...Read More
A few weeks ago we noted the bullish setup for 2020. Macro developments, one way or another will tend to favor Gold. There isn’t a realistic scenario that isn’t Gold bullish. Note the comments from various Fed-heads last week. They are laying the groundwork to target higher than 2% inflation and won’t consider raising rates anytime soon. And if they have to resume cutting rates G...Read More
You may think (or hope) that in your daily life you don’t need to worry about unknowingly eating or otherwise ingesting crude oil or any of its many, many petrochemical byproducts. But you would be wrong. And not just a little wrong--very, very wrong. Petroleum-based substances are in all kinds of innocuous-seeming things that we willingly put into our bodies. Even though petrochemicals are...Read More
Gold prices pushed sharply higher on Tuesday but have stalled ever since. Has the recovery rally completed? I think it has.Leave it to Trump to go and say something that causes the equity markets to print a two-day drop that wipes out more than a week of gains. But the tone in the markets might be changing.The US president went from saying that the trade deal might get delayed until after the elec...Read More
I can remember there were times during the PM complex bull market before 2011 that sometimes the PM metals would rally but the PM stocks were very weak. Then there were times when the PM stock would rise while the PM metals moved very little. At the time of those occurrences it was bewildering as common sense suggested they should all move together and the stronger the metals moved so should the P...Read More
The United States' flat-rolled import market is mixed, with prices for imported hot-rolled coil, cold-rolled coil and galvanized sheet inching up while those for plate are steady - although the material from abroad has failed to entice domestic buyers."Imports, just forget it. [Hot-rolled coil from Mexico] isn't attractive at all, it's pretty much the domestic price," a US steel distributor source...Read More
Through the first half of 2019, silver significantlyunderperformed gold. Put another way, gold gained relative to silver –culminating in the gold:silver ratio registering a 27-year high of 95:1. That market signal was received by the mining industry. Sincethere are few primary silver producers, and those that do mine silver alsotypically mine gold and some base metals, precious metals miners...Read More
UK suppliers of steel scrap to domestic consumers in the steel sector have gained another round of price increases for monthly settlements, sources told Fastmarkets on Thursday December 12.December contracts were up ?10 ($13) per tonne after increasing by ?15 per tonne in November, they said.The move marks a change in the downward trend of September and October when prices fell by a combined ?6...Read More
The ISM Manufacturing index fell 0.2 point to areading of 48.1 in November. However, gold struggles to find momentum. What isgoing on exactly? U.S.Manufacturing Sector Slumps FurtherThe Institute for Supply Management announced that its index of national factoryactivity dropped from 48.3 in October to 48.1 last month. The number was belowexpectations and it also remained below the 50 threshold, in...Read More
The three-month nickel price on the London Metal Exchange was higher at the close of trading on Thursday December 12, breaching nearby resistance despite its largest single inflow since 2016. Nickel's outright price on the LME closed at $14,100 per tonne this afternoon, a climb of 1.5% from Wednesday's closing price of $13,850 per tonne. Turnover in nickel was high over the day, with just over 9,4...Read More
When gold’s price reached $850 per ounce in January 1980, it seemed as if nothing would stop the runaway train that was headed straight for $1000 per ounce. But it was stopped, and began sliding downhill quickly.By June 1982, two and one-half years later, gold’s price had declined by sixty-five percent. At close to $300 per ounce, the price of gold seemed farther away from the $1000 ma...Read More
Domestic prices for hot-rolled coil in Northern Europe have been largely unchanged day on day and sentiment in the market remains positive, sources told Fastmarkets on Thursday December 12.Domestic prices have been supported by combination of reduced output from European mills, a lack of competitive import offers and some demand recovery.Fastmarkets' daily steel hot-rolled coil index domestic, ex-...Read More
Here are five Fastmarkets MB stories you might have missed on Thursday December 12 that are worth another look.Middle Eastern steel producers need to diversify their product lines to survive weakening demand in the region, according to Saeed Ghumran Al-Remeithi, the chief executive officer of the United Arab Emirates' biggest steelmaker, Emirates Steel.China's domestic stainless steel prices dropp...Read More
Our research and predictive modeling systems have nailed Gold over the past 15+ months. We expected Gold to rally above $1750 before the end of this year, but the global trade wars and news cycles stalled the rally in Gold over the past 2 months. Now, it appears Gold is poised for another rally pushing much higher. But wait, if you’re thinking I’m just another one of those...Read More
Justwhen most traders thought that the previous week is going to end in the red forgold, something exceptional happened. The USD Index reversed after rallying,and gold rallied sharply in response. In the end, gold ended the week in thegreen by forming a clear weekly reversal. Thatwas actually the second weekly reversal that we saw recently. Why is thisimportant? Because of what happened shortly af...Read More
Crudeoil futures declined sharply on Friday. The steep slide’s result was a breakdown below the lower border ofthe rising green trend channel. As the prices closed the day below theformation, it’s clearly a bearish development. Despitethis setback, the bulls opened the week with a green gap, which has triggeredmodest improvement in the following hours. The bulls are fighting to invalid...Read More