Tag: dollar

After Fed Disappoints, Will Trump Initiate Currency Intervention?

After Fed Disappoints, Will Trump Initiate Currency Intervention?

Following months of cajoling by the White House, the Federal Reserve finally cut its benchmark interest rate. However, the reaction in equity and currency markets was not the one President Donald Trump wanted – or many traders anticipated. The Trump administration wants the Fed to help drive the fiat U.S. dollar lower versus foreign currencies, especially those of major exporting countries. Instead, the U.S. Dollar Index rallied throughout July ahead of the expected rate cut and continued rallying after Fed chairman Jerome Powell made it official on Wednesday. In fact, the Federal Reserve Note broke out to its highest level since early 2017. The Fed also announced it would end […]

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Jim Rickards Exclusive: Dollar May Become “Local Currency of the U.S.” Only

Jim Rickards Exclusive: Dollar May Become “Local Currency of the U.S.” Only

Your browser does not support the podcast player element. DOWNLOAD MP3 Mike Gleason: It is my great privilege to be joined now by James Rickards. Mr. Rickards is editor of Strategic Intelligence, a monthly newsletter, and Director of the James Rickards Project, an inquiry into the complex dynamics of geopolitics and global capital. He’s also the author of several bestselling books including The Death of Money, Currency Wars, The New Case for Gold, and now his latest book The Road to Ruin. In addition to his achievements as a writer and author, Jim is also a portfolio manager, lawyer and renowned economic commentator having been interviewed by CNBC, the BBC, […]

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Gold “Trumps” Dollar amid geopolitical concerns

Gold is always considered as a safe haven by investors when compared to other investments like stocks, bonds, and currencies. Extending its recent upward trend, Gold prices have gained 6.5% year-to-date with Spot gold price reaching its five-month closing high of $1,288.50 an ounce. Due to the recent geopolitical concerns and uncertainty prevailing in the US economic policy under Trump administration, precious metals are seeing a revival in demand amidst investors. Spot Gold price was expected to reach up to $1300 as it surged intra-day to $1297. Also, the dollar index consolidated losses and fell below its key 101 level to reach 99.499 as of 18th April 2017. Fed Chair […]

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US Dollar Rebound Increases Near-Term Risk

US Dollar Rebound Increases Near-Term Risk

Last week we noted that the odds favored more upside in precious metals before a larger correction would begin. While that view remains on track, we want to note the renewed strength in the US Dollar which could provide immediate resistance to higher levels in Gold and gold stocks. The chart below plots the weekly candles for the US$ index and the net speculative position in the US$ index. The US$ index closed back above its 200-day moving average (97) and remains well above its 400-day (or 80-week moving average). The larger consolidation appears to be an ascending triangle which is a bullish continuation pattern. Upon breakout through 100, the […]

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Global Uprising, Refugees and Gold

| December 3, 2015 | Category: Investing
Global Uprising, Refugees and Gold

This interview is based on an interview with Claudio Grass, Managing Director, Global Gold, who lives in Switzerland and has a birds eye view of the events unfolding in Europe, the Middle East, and beyond. Courtesy of The Daily Coin.

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Jim Rickards: What Will The Fed Decide in 2016?

| November 12, 2015 | Category: Economy
Jim Rickards: What Will The Fed Decide in 2016?

The Fed’s next move will be towards ease because of the weakness in the US economy. However, it would not happen right away, I expect it in the first quarter of 2016, so perhaps in March or April of 2016 I think the Fed will give some kind of easing. What happened in the last 30 days is exactly what we were expecting, but I think it’s come as a shock to them, because their forecasting models are different. And so they’re beginning to wake up to the fact that we’re going to a global depression and growth depression. But now the Fed is waking up to that, they don’t do anything quickly, it’s going to take a few months to digest all of this, they’re going to hope that things bounce back, but I don’t think that they will. Finally, I expect them by maybe the end of the first quarter of 2016 to ease.

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Gold And Silver At Make Or Break Level, As Dollar Breaks Out Big Time!

| November 9, 2015 | Category: Price
Gold And Silver At Make Or Break Level, As Dollar Breaks Out Big Time!

The metals sold off last week. Gold is testing righ now its August lows. This is a critical price level, gold bulls would like to see this price level hold, otherwise a washout (capitulation-alike) decline could be in the cards. As for silver, it is holding up slightly better. According to the Andrews Pitchfork methodology from PitchforkPlayground.com, gold has been whacked hard as the US Dollar rallies. Support is occurring at the lower median line extension of the modified-Schiff pitchfork and the July/August lows. The outlook of the precious metals is clearly not supported by the secular breakout of the U.S. dollar. As the multi-decade chart shows, the dollar has broken out of its declining secular trendline, earlier this year, and is about to confirm its breakout by moving higher from these price levels.

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Dollar Decline Cycle

Dollar Decline Cycle

Expect continued US dollar weakness for several years. Expect stock and bond markets to “regress to the mean” – substantially lower. Expect gold and silver prices to benefit from dollar weakness and US geopolitical difficulties. $5,000 gold will not happen this year but it is quite possible by the election in 2020. Much higher prices are likely if central banks and governments choose to push the US into a hyperinflationary collapse. And finally, buy gold and silver while supplies at these repressed prices (thank you TBTF banks) are still available.

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Two Charts That Gold Bulls Will Love

| October 6, 2015 | Category: Price
Two Charts That Gold Bulls Will Love

First, the U.S. dollar is taking quite some time consolidating. With a U.S. Fed kicking the can down the road when it comes to hiking interest rates, the market has clearly understood that the dollar cannot rally, at least not in the short to mid term. The strongly declining volume on the chart suggests interest in the dollar is waning. Second, gold is attempting to make a huge breakout, as evidenced on the following chart. The number of touchpoints on the resistance line is 5. The area between support and resistance line is minimal. If gold will succeed in breaking out, it will be THE long anticipated trend change.

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Gold and Miners Jump as Dollar Dumps

| October 2, 2015 | Category: Price
Gold and Miners Jump as Dollar Dumps

Gold and gold miners benefit from falling bond yields today. Gold is a non-yielding asset. As a result, its appeal increases when bond yields fall. That’s especially true if the dollar is dropping as well (more on that shortly). Gold may also be benefiting from increased tensions in the Mideast. The daily bars on the first chart show the Gold SPDR (GLD) jumping the equivalent of $23 dollars today (+2.2%). Gold is recovering from a five-year low, and has a long way to go to reverse its major downtrend. The same is true of gold miners.

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Gold and Silver, Good and Bad Choices

| September 29, 2015 | Category: Investing
Gold and Silver, Good and Bad Choices

Buying gold in early January 1980 and for much of the next 19 years was probably a bad choice, so do your own research to make good choices. While trading paper currencies for gold is, in my opinion, currently a good exchange, it is not always a good choice.

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Ufa: Why It Matters To Precious Metals And The Dollar, But Does Not

| September 19, 2015 | Category: Investing
Ufa: Why It Matters To Precious Metals And The Dollar, But Does Not

The world is fast changing, and while Ufa is not a dominate feature on the world stage, it is an important one of so many, unnoticed by so many American, so unaware. Those unaware are unaware of being unaware. So true.

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Dollar, Deficits, Fed: Trinity Of Truth

Dollar, Deficits, Fed: Trinity Of Truth

We started with the statement ‘simply print more Fiat currency, and you inflate away the debt’… and the first part ‘simply print more Fiat currency’ fails the Trinity of Truth test. Under our current system it’s impossible to ‘simply print more Fiat currency’. How about the rest? Can we ‘inflate away the debt’? Well, if each new Dollar created is of necessity accompanied by a newly created Dollars’ worth of debt, this does not seem likely, does it? Any effort to ‘print away’ existing debt will result in ever larger debt. This is the road to bankruptcy.

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Markets And People Never Change. Gold And Silver Chart Analysis.

| September 12, 2015 | Category: Investing
Markets And People Never Change. Gold And Silver Chart Analysis.

Markets never change. They are always the means for money powers to distribute their gains to the unsuspecting masses, and like the markets, people never change, always set up for being fleeced. One of the most important markets to watch is FX, foreign currencies, for that is where the demise of the Federal Reserve’s fiat Federal Reserve Note, more commonly accepted as the “dollar,” will play out.

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