|Bid||126.99 x 1800|
|Ask||0.00 x 1300|
|Day's Range||130.18 - 130.79|
|52 Week Range||111.06 - 130.79|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.01|
|Expense Ratio (net)||0.40%|
The Federal Reserve took a dovish tone during its most recent meeting, which sent Treasury yields lower and gold prices higher.
As widely expected, the Fed kept its rates unchanged in its the latest meeting but has hinted at rate cuts this year. These sectors won/lost from the Fed's activity and guidance.
The indices are gapping higher in the early going Thursday morning as the market continues to celebrate a dovish Fed. There was nothing very surprising about the Fed interest rate decision and policy statement. As I've written quite often in the past decade, the market loves to love the Fed. The positive response is reflexive and anyone that doubts it is run over by the momentum. The Fed interest rate cuts will be ineffective and that the fallout from the trade war with China will offset the Fed's efforts.
The Persian Gulf is Boiling Iran shot down a US drone in the Straits of Hormuz, the narrowest point of the Persian Gulf, the biggest oil shipping lane in the world. The Iran Revolutionary Guards claimed credit for the move, the first time the country has admitted to playing a role in blowing something up […]The post Market Morning: Iran Downs Drone, Gold Breaks Through, Mexico Approves USMCA appeared first on Market Exclusive.
In a move that was widely expected, the Federal Reserve opted not to cut interest rates on Wednesday. The decision comes just six weeks after the Fed said the U.S. economy is solid and the labor market remains strong. “In light of these uncertainties and muted inflation pressures, the Committee will closely monitor the implications of incoming information for the economic outlook and will act as appropriate to sustain the expansion, with a strong labor market and inflation near its symmetric 2 percent objective,” the Fed said in a statement.
The price of gold, as measured by the popular SPDR Gold ETF (NYSEARCA:GLD), is currently higher by about 5% for the year. While this may not excite the quick money chasers, the underlying up-trend looks to just be getting started. Thus, the GLD ETF looks like a good tactical allocation through the coming months and quarters.Source: Jeremy Vohwinkle via Flickr (Modified)When looking at a sector or group or stocks, or an entirely different asset class like a commodity or parts of fixed income it is imperative to understand what the underlying driver is for price movement. Just like each stock sector, the price of each commodity has its own unique set of "things" it reacts most sensitively to and certain market environments that it either likes or dislikes.Regarding the price of gold, over the course of my career as a professional trader and investor, I have found that the environment it likes most is when both economic growth as well as inflation expectations are dropping. This happens to be the broader economic environment we currently find ourselves in.InvestorPlace - Stock Market News, Stock Advice & Trading Tips GLD ETF Charts Click to EnlargeMoving on to the charts, it is particularly important when making bets on the price of gold to have the proper perspective as to where it currently trades in the bigger picture.On the multi-year weekly chart we clearly see that the GLD ETF recently broke out of a well-defined narrowing wedge pattern (blue lines). From this perspective, this absolute price breakout looks to have plenty of room left on the upside toward $140 as the next bigger target for now.In the lower part of the chart in yellow, I plotted a ratio chart of gold divided by the S&P 500. While the trend there is still lower, one can see that it won't take much from here to see a relative trend break from bearish to bullish of gold versus large cap stocks. If and when we see a relative breakout come to fruition, this would only add fuel to the rally in the GLD ETF. Click to EnlargeOn the daily chart, we see that thanks to the latest rally over the past few weeks, the GLD ETF has now arrived back at a simple horizontal area of technical resistance in the high $120s, as marked by the blue box. In this latest rally since late May, the ETF has rallied more than 5%. With the aforementioned overhead resistance in place this may well offer a cause for a pause in the rally in the immediate term.However, note that this layer of overhead technical resistance is now being tested for the seventh time since September 2017 and it also offered resistance in 2016. In my eye, the more often this technical layer is pierced, the better the odds that ultimately the price resolves higher.Thus, investors and traders with a time horizon of a few months/quarters could look to buy the GLD ETF here in the mid-to-high $120's with a next upside profit target at $140 and a stop loss at $120.Get FREE ACCESS to Serge's renowned Stock Market Scanner with actionable trade ideas. Get it HERE. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Value Stocks to Buy for the Second Half * 7 Hot Stocks to Buy for a Seemingly Sleepy Summer * 6 Chip Stocks Staring At Big Headwinds in 2019 Compare Brokers The post Trade of the Day: The SPDR Gold ETF Is a Buy appeared first on InvestorPlace.
During DoubleLine's investor webcast on June 13, Jeffrey Gundlach said, “I am certainly long gold.” His call on gold is based on his expectation that the US dollar (UUP) will finish lower this year.
Technically speaking, the major U.S. benchmarks have taken flight mid-month, rising amid persistently bullish June price action, writes Michael Ashbaugh.
Could there soon be a recession? "Bond king" Jeffrey Gundlach thinks so. He shared his views regarding the Fed, markets, recession, and strategies to hedge against the slowdown during a DoubleLine investor webcast on June 13.
Leading cryptocurrency Bitcoin crossed the $9,000 mark for the first time since May 2018 amid the hype over social media giant Facebook and its latest cryptocurrency offering. Instead of checking their banks to ensure their direct deposit went through, Facebook employees could open their cryptocurrency wallets on pay day as the social media giant will be rolling out its own digital currency soon. This news is setting the cryptocurrency space abuzz with optimism as Bitcoin reached a high of $20,000 near the end of 2017 and fell over 70 percent since, but is climbing back to prominence again following this news.
Trump Promises Mass Roundup of Millions of Undocumented Immigrants The low-end of the US economy could be on the verge of a serious conflagration. United States President Donald Trump has promised, via tweet as is his wont, that ICE agents will start “removing the millions of illegal aliens who have illicitly found their way into […]The post Market Morning: Trump Immigrant Roundup, Gold Threatens, Google Goes Pharma appeared first on Market Exclusive.
It’s always worth watching measures of risk appetite when evaluating equities, and one such gauge recently perked up: the ratio of lumber to gold. That could suggest more upside in stocks more broadly, according to All Star Charts Institutional’s Top 10 Charts of the Week. “In past versions of this report, we've spoken about […]
Opportunity lies with low and falling interest rates, says Mark DiOrio of Brookstone Capital Management. You just need to position yourself right.
May's market oscillations certainly gave investors a thrilling ride on the volatility roller coaster and this is exactly what hedge fund manager and philanthropist Paul Tudor Jones saw coming as early as last year. Now, Jones has the prescience to forecast rate cuts instituted by the Federal Reserve. The investing prowess of Jones was on display as he was able to forecast May's volatility.
Gold received a vote of confidence from hedge fund manager and philanthropist Paul Tudor Jones who says that if the commodity can break the $1,400 price barrier, it could reach $1,700 quickly. With trade wars looming coupled with a more dovish central bank, gold is what Jones is eyeing within the next two years. “[Gold] has everything going for it,” said Jones.
Apple prices in China are up almost 30%, detracting from its consumption for the commodity, according to the latest data from grocery delivery platform Dada-JD Daojia. This latest development could put ...
Gold bullion is up 3.6% year to date through June 11. Barrick Gold (NYSE:GOLD) stock has risen 0.4% in 2019 including dividends.Source: Jeremy Vohwinkle via Flickr (Modified)InvestorPlace - Stock Market News, Stock Advice & Trading TipsIt seems as though demand for gold is getting stronger, both because we're heading into an election cycle with a president who's very unpredictable and because the economic news isn't nearly as strong as it once was, making a July interest rate cut a possibility. "The economy is not tremendously strong, but it's also not that bad," said Chantelle Schieven, head of research at Murenbeeld & Co. "I just feel that a rate cut in July would send the wrong message." * 7 High-Quality Cheap Stocks to Buy With $10 Last week, the weak employment numbers enabled gold bullion to have its best five-day period in a long time. Furthermore, President Trump's unpredictability has businesses confused about their best course of action. "Right now companies can't make any decisions because they don't know what the government is going to do next," Schieven said. "We are not forecasting a recession, but this indecision will send the U.S. economy into a stall."So, let's assume that gold is the smart way to hedge against further difficulties in both the political and economic arenas; should an investor buy gold bullion or a proxy such as the SPDR Gold Trust (NYSEARCA:GLD) ETF or should he or she purchase the stock of a top-notch gold producer such as GOLD stock?Personally, I've never been a fan of gold, so I've got no dog in this hunt. Nonetheless, here's my two cents on the issue. Gold BullionThe great thing about gold bullion is that it's a tangible asset. It enables investors to own something they can hold. But that's not the reason most people buy gold. Most investors who buy gold or a gold equity like GOLD stock are doing so because they think that if all heck breaks loose, gold is one of the few assets that will hold its value.My fellow InvestorPlace columnist, Josh Enomoto, recently recommended seven stocks to buy for the coming recession. Interestingly, although Josh suggested Barrick, he doesn't own GOLD stock. He does, however, own gold bullion. "The spot price for the monetary commodity spiked in late May, to no real surprise. The only shocking thing is that it took so long," Josh wrote in a column published on June 11. "We're mired in a deeply contentious political environment, both here and abroad. Furthermore, the dollar has weakened against a basket of international currencies, setting the stage for a stunning recovery."At this point in the economic cycle, I find it hard to believe that the price of gold is going to fall back below $1,000, where it traded before the recession. Investors are looking for places to hide their money. Gold bullion seems like as good an option as bonds at this point. GOLD StockAssuming that the price of gold is going to keep moving higher, the outlook of Barrick Gold stock should continue to improve. Over the past decade, Barrick's most successful years were 2010 and 2011. Not coincidentally, that was when the price of the yellow metal hit its highest level since 1980. In 2010 and 2011, Barrick had operating margins of 46% and 51%, respectively, on annual revenue well above $10 billion; it hasn't come close to that level of profitability since then. Not surprisingly, GOLD stock price hasn't come close in recent years to its 2011 high around $51. The Bottom Line on GOLD StockIf gold does well over the next 12-24 months, Barrick could benefit from the metal's run.However, history shows that GOLD stock price doesn't always move in tandem with gold prices. For example, between 2007 and 2011, the price of gold surged around 125%, but GOLD stock price only rose about 25%.For this reason, if you think gold is going to go on a run, but don't want to own the physical asset, you might be better served by buying an ETF that holds a basket of gold producers, not just Barrick Gold stock.A rising tide lifts all boats. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 High-Quality Cheap Stocks to Buy With $10 * 7 U.S. Stocks to Buy With Limited Trade War Exposure * 6 Growth Stocks That Could Be the Next Big Thing Compare Brokers The post Should Investors Buy Barrick Gold Stock? appeared first on InvestorPlace.
A Perfect Storm for Gold: All Macro Drivers Align(Continued from Prior Part)Fed rate cutsFed policymakers are set to meet on June 18 and 19. Whereas the market has not priced in a rate cut in June, at least two rate cuts are expected by the end