|Bid||0.00 x 1000|
|Ask||0.00 x 900|
|Day's Range||112.79 - 113.68|
|52 Week Range||111.06 - 129.51|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.40%|
Live from the floor of the New York Stock Exchange, Yahoo Finance's Jared Blikre joins Alexis Christoforous to discuss the latest moves.
Trade tensions and a looming hurricane but U.S. stocks look strong. But Dennis Gartman of The Gartman Letter, says global equities are being weighed down. Gartman joins Yahoo Finance's Seana Smith and Dion Rabouin to discuss his outlook on equities, commodities and the global markets.
The SPDR Gold Shares (NYSEArca: GLD) and other gold exchange traded products are trying to avoid a sixth consecutive month of losses this month. Some data points suggest that could be a difficult task ...
Gold investors typically tout several virtues of the yellow metal: It hedges against inflation, they say, it's an uncorrelated asset that doesn't move with the stock market and it can grow in value when national or even global uncertainty is high. Those features help build the bull case, which you can leverage via gold exchange-traded funds (ETFs). Gold admittedly hasn't given investors much to work with for years. After a decade-long run topped out in 2011 above $1,850 per ounce, prices slammed back to earth and have been stuck in a range between $1,100 and $1,300 since 2013. Still, some people look to gold investing to diversify their portfolios, and aggressive investors can try to squeeze profits out of short-term swing trades. We recommend that if you do try your hand at this commodity, you understand the ins and outs of investing in gold, make it a small portion (5%) of your portfolio and use ETFs, for several reasons, including liquidity, low expenses and ease of use. Here's an introduction to seven low-cost gold ETFs that offer varying types of exposure to the precious commodity. This list includes the most ubiquitous gold ETFs on the market - funds you typically can read about in just about any daily commodity wrap-up - as well as a few that aren't as well-covered by the financial media but might be better investments than their high-asset brethren. SEE ALSO: The 15 Best ETFs to Buy Right Now
A record number of fund managers in the BAML (Bank of America Merrill Lynch) September survey believe that gold (IAU) is undervalued, trading at a 17-year low. The SPDR Gold Trust ETF (GLD) has fallen ~8.5% year-to-date and ~13% from its April peak. It’s usually considered a safe-haven asset in which investors take refuge in the event of uncertainty and risk. However, gold has not been able to draw safe-haven bids so far in 2018 since the strong US dollar (UUP) keeps weighing it down.
In Could Trade Tensions Support the US Dollar Again? we discussed how the dollar makes a comeback after trade tensions seem to escalate. Year-to-date, gold prices have fallen 8.6% while the US Dollar Index has risen 4.8%. As the news of the new round of trade tariffs hit the market, gold prices fell while the dollar rose.
Which Sectors Are Worried about Rising US–China Trade Tensions? Ray Dalio, the billionaire founder of world’s largest hedge fund, Bridgewater Associates, noted on September 10 that China (FXI) isn’t really concerned about the import tariffs imposed and proposed by the US (SPY)(IVV). During his interview on Squawk Box, he added that China is more focused on its ongoing relationship with the United States.
It has been a decade since the collapse of Lehman Brothers. While governments loosened their purse strings, central banks also took a dovish approach by lowering interest rates and using other monetary policy tools. Fast forward to 2018, the tools available for central banks and governments look limited.
Yesterday, President Trump imposed a 10% tariff on $200 billion worth of goods from China. For now, tariffs don’t yet cover Apple (AAPL) smartwatches and some other consumer products. While the tariffs are a somewhat toned-down version of what Trump previously threatened, they have nevertheless hurt sentiments. Trump also warned China that “we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports” if the country retaliated against the tariffs. China has previously retaliated against US tariffs with tit-for-tat measures.
The US dollar (UUP) made a comeback on September 14 after reports suggested that Donald Trump is planning to impose tariffs on Chinese goods worth $200 billion, despite trade talks. The US dollar has benefited significantly from safe-haven bids due to escalating trade tension, especially between the United States and China (FXI).
The SPDR Gold Trust ETF (GLD) has fallen ~8.4% year-to-date and ~11.5% from its April peak. September is usually a stronger month for gold after the summer doldrums. In this September, however, investors could remain in a wait-and-see mode until the Federal Reserve’s September 25–26 meeting is over.
This has been a whipsaw year for the stock market. President Trump is trying to strike better deals between the U.S. and its trading partners. The U.S. has already levied billions of Tariffs and partners have responded in kind.
The CFTC (Commodity Futures Trading Commission) reports the position of major players in the futures market through its COT (Commitment of Traders) report. According to the COT report for the week ended September 4, money managers resumed building their short positions in gold futures. The money managers increased their net short positions from 75,772 contracts to 82,722 contracts in the latest week.
A yield curve tracks the yields of Treasury securities maturing at different times. When the yield curve (BND) inverts, it means that the yields of shorter-duration securities become larger than those of longer-term securities. The inversion of the yield curve has been a good indicator of upcoming recessions in the past.
Among the emerging market (VEU) currencies, the Argentinian peso, Turkish (TUR) lira, Indonesia rupiah, and Indian rupee are declining to all-time lows. The US dollar is also strengthening against all major currencies, including those of emerging markets. As the US dollar strengthens and interest rates rise, the cost of servicing US debt for other countries goes up.
The US CPI (consumer price index) for August rose 0.2% sequentially compared to the 0.3% growth that was expected by economists. In the 12 months through the end of August, the CPI rose 2.7%, lower than July’s 2.9% rise. The core CPI, which excludes the volatile food and energy components, rose 2.2% in the 12 months through August, also lower than July’s 2.4% rise.
The demand for gold in India (INDA) for most of 2018 has been muted. While gold prices (GLD) have fallen, Indian investors haven’t been able to take full advantage of the fall. Along with declining gold prices, the Indian rupee has also lost value against the US dollar (USDU).
The unemployment rate for August came in unchanged at 3.9%, which was higher than economists’ expectations of 3.8%. The Federal Reserve is forecasting unemployment of 3.5% by the end of this year. The most awaited piece of the employment situation, wage growth, didn’t disappoint the economists this time.
The US (IVV)(QQQ) employment data for August was released on September 7. After disappointing in July, the job additions in August rebounded to 201,000 compared to economists’ expectations of 191,000 and last month’s additions of 147,000.
Precious metals miners ETFs surged Wednesday as gold strengthening on a weaker U.S. dollar and after Australian miners struck the "mother lode" of gold. The SPDR Gold Shares (GLD) rose 0.9% as Comex gold futures were 0.9% higher to $1,213 per ounce. A mine in Western Australia struck gold, uncovering around $11.5 million worth, NPR reports.
The balance of trade is the difference between a country’s monetary value of exports and imports. A positive balance is known as a trade surplus—exports are greater than imports. A negative balance is known as a trade deficit.
Year-to-date, the UUP ETF (UUP) has risen 5.2%, while the SPDR Gold Shares ETF (GLD) has declined 8.4%. According to a Reuters poll, while the US dollar could hold onto its gains for the rest of this year, it’s unlikely to maintain its ascent after that. Other factors supporting the dollar such as rate hikes and trade tensions have now been priced into the dollar. Morgan Stanley analysts also believe that the US dollar is “topping out,” according to Bloomberg.
Apple To Unveil Yet Another iPhone Technology never sleeps, and the iPhone doesn’t let you sleep either, if you don’t put it on Do Not Disturb as all of your social media accounts ping at you through the night. Apple (NASDAQ:AAPL), meanwhile, is expected to unveil a new series of the iPhone X. Will it […] The post Market Morning: Apple Phones Home, Inflation On Tap, Saudis Borrow Billions, Brexiteers Discuss Mutiny appeared first on Market Exclusive.
Gold investors have been puzzled by the way gold prices (GLD) are falling amid ramped-up trade tensions and emerging market crises. The US dollar’s (UUP) strength and the rate hike outlook have been pressuring gold prices for most of 2018. Lately, gold prices have been trading without much direction.