|Bid||0.00 x 2900|
|Ask||0.00 x 1000|
|Day's Range||116.58 - 117.30|
|52 Week Range||111.06 - 129.51|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.03|
|Expense Ratio (net)||0.40%|
The U.S. dollar appears to be on a mission to spoil Christmas in Goldville as weakness in the precious metal persists while the greenback gains. On Friday, global growth concerns stemming from China and Europe as well as more declines in the U.S. stock market couldn't help steer investors away from the U.S. dollar, which has been continuing its upward trajectory for most of the year. The U.S. Dollar Index (DXY), in turn, gained 0.36 percent by the close of Friday's session.
Could Market Risks Bring Investors Back to Gold in 2019? During an investor webcast on December 11, DoubleLine CEO Jeffrey Gundlach painted quite a bearish picture of stocks, bonds, and the US economy (SPY)(DIA). Gundlach also cited an Atlanta Fed study that calculates that an unwinding of $600 billion from the Fed balance sheet is equivalent to three interest rate hikes.
According to a report by the World Gold Council (or WGC), holdings in gold ETFs rose for the second consecutive month in November to 21.2 tons to a total of 2,365 tons. It also said that the global gold-backed ETF flows are now positive in US dollar (UUP) terms for the year. ETF flows were positive for the first time in four months. The renewed buying interest from investors was on account of increased market volatility and the equity market sell-off.
Could Market Risks Bring Investors Back to Gold in 2019? Last week turned out to be great for gold prices (GLD). As equity and bond markets continued to struggle, gold made the best of the situation.
Silver prices have fallen almost three times as much as gold prices have in 2018 thus far. While the SPDR Gold Trust (GLD) has fallen 4.8% year-to-date, the iShares Silver Trust (SLV) has fallen 14.6% in the same period. Silver (SIL), on the other hand, has had no such luck.
The contradictory statements from White House officials, Trump’s tweets, and the arrest of the Huawei CFO in Canada dimmed the outlook for a permanent trade deal between the US and China (FXI). Equity markets also took cues from the bond market, which portended a slowdown ahead.
A round of weak Chinese economic data spooks global investors, but fails to lift gold thanks to a stronger U.S. dollar.
Holdings of bullion for gold exchange traded products, including the SPDR Gold Shares (NYSEArca: GLD), rose in November, marking the second consecutive month that has happened. Global gold exchange traded ...
The US jobs report for November was released today. The job additions came in at 155,000 as compared to consensus expectations of 198,000. While job additions in manufacturing remained strong at 27,000, construction net adds declined to 5,000.
Against this year's backdrop of rising interest rates and the strong U.S. dollar, gold exchange traded products, including the SPDR Gold Shares (GLD) , are struggling. GLD, the largest gold ETF by assets, is lower by more than 5% year-to-date. “Since 2013, there’s been a more than 80 percent chance of a positive return in gold prices in January,” reports Bloomberg.
Gold futures notch a gain on Thursday as a leading dollar index weakens, with the dollar-denominated metal finding some haven demand alongside a sharp tumble in stock trading.
Will the yield curve invert, with short-term interest rates pushing their way above long-term interest rates … a relatively rare scenario that’s all too often associated with a troubled economy? A true inverted yield curve has not happened yet, but as of right now we’re as close to an inverted yield curve as we’ve been in a decade. Translation: It sure couldn’t hurt to go ahead and make plans for an inverted yield curve, just in case that’s how things take shape.
The yield curve mainly reflects bond market investors’ expectations of the Fed’s actions and future economic conditions. As the Fed may hike up short-term rates by another 25 basis points at the December meeting, the yield curve could invert. The Fed has maintained that its future decisions will depend on market data.
On December 3, global markets rose due to the US-China trade war truce. Although the truce is temporary, it eased concerns about the coming global slowdown. President Trump and President Jinping met on the sidelines of the G20 summit in Argentina. While market participants weren’t hopeful about a deal, the 90-day truce on raising tariffs on Chinese products to 25% from 10% came as a welcome surprise to the markets.
Commodities on the Move Energy and metals prices are moving strongly higher today in tandem. Oil (NYSEARCA:USO), gold (NYSEARCA:GLD), natural gas (NYSEARCA:UNG), and gasoline (NYSEARCA:UGA) are all up over 2% this morning. Metals price are also moving higher though not as strongly. Gold is up another half a percent, silver close to a percent, the […] The post Market Morning: Commodities Climb, Yield Curve Inverts, Rioters Win, Big Tobacco Courts Cannabis appeared first on Market Exclusive.
As we’ve discussed in this series, market uncertainty is increasing. Looming earnings deceleration, trade policy uncertainty, and the Fed’s tightening have been major factors weighing on investors’ minds. For most of this year, gold (GLD) has not been a safe-haven asset, as the US dollar (UUP) (USDU) has continued strengthening and the Fed’s rate hike outlook has remained strong.
Ray Dalio, chair and chief investment officer of Bridgewater Associates, feels that stock investors aren’t prepared for the next bear market. According to CNBC, in a discussion at the Greenwich Economic Forum, Dalio said he doesn’t “think there’s much to protect investors” during a downturn. Ray Dalio also likes gold.
Which Gold Miners Have Shown Upside Potential since Q3? As we discussed in As Positive Catalysts for Gold Emerge, Which Miners May Benefit? gold miners are looking inexpensive compared to broader equities. The average ratio of the NYSE Arca Gold Miners Index and the S&P 500 Index (SPY) is 0.20 compared to the ten-year average of 0.68.
MORRIS: That’s interesting. Well, now let’s move on to the companies. I’ve heard you say a number of times that you think the industry is in great shape, they’ve contained their cost. The companies are in great shape. Can you tell us a little bit more about your view of the companies’ position right now financially?
Is Gold Positioned for a Bullish Turn as We Enter 2019? FOSTER: We’re at the point in the cycle I think investors should think of some defensive measures. MORRIS: One other thing I wanted to talk to you about today, is that there’s been some recent merger activity, and I remember hearing that you’d actually looked at the recent developments as pretty positive overall, for the industry, and could be another positive catalyst for gold miners.
Gold and the corresponding exchange traded products have been mostly disappointing this year, but some investors believe bullion is a top idea for 2019. “For the second year in a row, investors remain optimistic that gold will shine in 2019 as they search for stability in an environment of growing uncertainty and volatility, according to a survey conducted by international investment firm Legg Mason,” reports Kitco News.
Which Gold Miners Have Shown Upside Potential since Q3? In this article, we’ll take a look at senior gold miners’ technical indicators. Moving averages help traders and investors make market entry or exit decisions.