|Bid||0.00 x 1800|
|Ask||0.00 x 800|
|Day's Range||27.60 - 27.64|
|52 Week Range||25.83 - 27.79|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||3.95|
|Expense Ratio (net)||0.50%|
Gold: Analysts Are Bullish despite Weak Performance in 2019(Continued from Prior Part)BMO Capital Markets BMO Capital Markets raised its gold price forecast for 2019 0.8% to $1,293 per ounce in March. The firm is expecting gold prices to average
The U.S. dollar has been hovering around 10-month high thanks to the economy???s much-better positioning in the developed market pack. This creates a buying opportunity for these ETFs.
BAML Survey: How Are Global Fund Managers Positioned?(Continued from Prior Part)Most crowded tradeAccording to the latest Bank of America Merrill Lynch survey, shorting European equities (HEDJ) has been the most crowded trade for two months in a
Why Jeffrey Gundlach Thinks Now's a Good Selling Opportunity(Continued from Prior Part)Jeffrey Gundlach on the next downturn Jeffrey Gundlach believes that if equities do well this year, emerging market equities will do better than US stocks (SPY)
The U.S. dollar has been the pushy salesman who won't take no for an answer when it comes to potential declines from a more dovish Federal Reserve. Of course, less hikes and a rate cut would translate to dollar weakness, but the greenback has been snubbing that notion as of late. The U.S. ICE Dollar Index, a key measure for the dollar against 12 other currencies, has been on an upward trajectory since April 2018. Of course, a stronger dollar is translating to indigestion for gold traders--the precious metal has taken a back seat with the precious metal falling one percent on Tuesday to settle at a price of $1,274.05 as of 1:30 p.m. ET.
Why Jeffrey Gundlach Thinks We're Still in a Bear Market(Continued from Prior Part)The next move for the US dollar could be downDuring his “Highway to Hell” webcast, Jeffrey Gundlach put forth several arguments for a bearish long-term outlook
What Are Markets Expecting from Fed’s Policy Meeting?(Continued from Prior Part)Fed’s inflation targetThe Federal Reserve’s two main objectives are stabilizing prices and maximizing employment. The Fed’s inflation target has been 2% for a
Goldman Sachs: Why It's a ‘Pound-the-Table Time’ to Buy GoldGold prices fell recently Gold prices (GLD) fell by over 2.5% for the week ended March 1, their biggest weekly decline since August 2018. Mostly, the trade optimism between the US and
Buffett versus Dalio on Gold: Whose Advice Should You Take?(Continued from Prior Part)Fed to let inflation overshoot target? The Federal Reserve has two main objectives: price stability and maximizing employment. Its inflation objective has been 2%
The U.S. dollar and related exchange traded funds just experienced back-to-back session gains, reflecting the ongoing strength in the greenback and adding to concerns for some. ETF traders can gain exposure to an appreciating greenback through targeted ETF strategies. For instance, the PowerShares DB U.S. Dollar Index Bullish Fund (UUP) tracks the price movement of the U.S. dollar against a basket of currencies, including the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc.
Gold’s Long-Term Outlook Is Upbeat despite Short-Term Headwinds(Continued from Prior Part)Jeffrey Gundlach recommends gold The so-called “bond king” and the CEO of DoubleLine Capital, Jeffrey Gundlach, said during Barron’s 2019 Roundtable
Ray Dalio Thinks a Recession Is ComingRay Dalio’s take on ChinaBridgewater Associates founder Ray Dalio is in Davos, Switzerland, for the World Economic Forum (or WEF), where he offered his take on the slowdown in China and how it could impact
Is Gold Ready to Fly in the New Year?(Continued from Prior Part)The US dollar and the Fed’s approach Like the Fed’s policies, the strong US dollar (UUP) impacted gold prices (GLD) this year. Key factors supporting the dollar this year were the Fed’s interest rate hikes and outlook, trade war concerns, and US markets’ (SPY) (QQQ) outperformance of other markets.
Bulls versus Bears on Wall Street: Time to Buy Gold in 2019? In contrast to Bank of America Merrill Lynch’s bullish view on gold (GLD) in 2019, JPMorgan Chase (JPM) expects gold (NUGT) and silver’s (SLV) performance to remain to lukewarm—at least in the first half of 2019. Unlike BAML, JPM is neutral on gold and silver in the first half of 2019 and expects prices to hold between $1,200 and $1,250 per ounce.
Credit Suisse (CS) is positive about gold prices (IAU) in 2019. The bank expects gold prices to average $1,275 per ounce in 2019 and $1,300 in 2020.
For most of the year, gold prices (GLD) have languished, thanks to a strong US dollar (UUP), hawkish Fed rate hike outlook, and strength in the equity markets. For the last few months, though, some of these factors seem to be reversing course. Equity markets, for one, have remained quite fragile and volatile (VIX) since October.
In a report published on November 26, Goldman Sachs (GS) stated that commodities (COMT) could climb 17% in the coming months. It believes that commodities will escape a 2015-style price collapse. Among commodities, GS is particularly bullish on oil (USO), gold (GLD), and base metals (DBB). According to CNBC, Goldman Sachs said, “Given the size of dislocations in commodity pricing relative to fundamentals with oil now having joined metals in pricing below cost support, we believe commodities offer an extremely attractive entry point for longs in oil, gold and base.”
Could Market Risks Bring Investors Back to Gold in 2019? As we’ve discussed in this series, market uncertainty is increasing after an unusually calm 2017 and part of 2018. The major sources of uncertainty are expected to be the looming trade war between the United States and China (FXI), the coming earnings and margins deceleration, the Brexit deal, and the Fed’s policy path.
Could Market Risks Bring Investors Back to Gold in 2019? The key factors supporting the greenback in 2018 have been the Fed’s interest rate hikes and outlook, trade war concerns, and the outperformance of US markets (SPY)(QQQ). The Federal Reserve has already raised rates three times this year, and it’s expected to raise them for a fourth time in December.
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.
Could Gold Be the Best Bet amid Increased Economic Uncertainty? The Fed’s interest rate hikes and outlook, trade war concerns, and the better US market (SPY) (QQQ) performance have been the key factors behind the dollar’s strength. The Federal Reserve has already raised the rates three times this year and is expected to raise them for the fourth time in December.
The budget balance is the difference between what a country’s government garners from taxes and other sources and what it spends. A budget deficit occurs when spending exceeds earnings. In such a situation, the government borrows money from its citizens as well as foreign entities. As this debt accumulates, it’s possible that the value of its currency could decrease. The US (SPY) (VTI) budget deficit is creeping up.
The Fed’s interest rate hikes and outlook, trade war concerns, and relatively better US market (SPY) (QQQ) performance as compared to the rest of the world are the major factors driving the dollar up. This rise in the dollar has put sustained pressure on gold (GLD) and other precious metals year-to-date.