Author Archive: Clif Droke

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The opposing forces behind gold’s bull market

The opposing forces behind gold’s bull market

What accounts for gold’s strong performance since the initial rebound in July? That’s the question that many analysts are (belatedly) trying to answer. The first and most obvious answer is stimulus; specifically the stimulus provided by the world’s leading central bank in the U.S. The Federal Reserve’s latest bond-buying scheme known as QE3 is to date the biggest stimulus aid that has had an impact in boosting the gold price. As we all know, gold loves inflation and any increase in monetary liquidity in the global financial system will be reflected in an increasing gold price sooner or later. Analysts have noted that the gold price has recently increased in, […]

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Why gold doesn’t need the Fed

| September 1, 2012 | Articles: Insights
Why gold doesn’t need the Fed

Gold was a star performer during the month of August, outshining other assets in an impressive rally which took many investors by surprise. Many analysts attributed gold’s strength to investors’ expectations of another monetary rescue operation from the Federal Reserve. But as we’ll see in this commentary, such an action is not only unlikely but unnecessary to gold’s continued strength. After a vigorous rally last week, gold investors adopted a cautious tone ahead of Friday’s annual gathering of central bankers and finance ministers at Jackson Hole, Wyoming. During the 2-day meeting, investors will be on the lookout for verbal hints that the U.S. Fed may implement another monetary stimulus, which […]

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Gold and the Middle East crisis

Gold and the Middle East crisis

The year 2012 has been relatively peaceful compared with the past 10 years.  The lack of military aggression on the part of the U.S. has led many to believe that the America’s days of military adventures are over.  But as we’ll see here, 2012 is simply a temporary respite in a longer-term “theater” of war that has only just passed the opening act. The past decade has indeed been one of near constant strife and turmoil.  Starting with 9/11 and the U.S.-led NATO invasion of Afghanistan, and later Iraq, the 10 years between 2001 and 2011 were characterized by ceaseless warfare.  The military invasions in the Middle East have been followed by civil and […]

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