Art Hogan, the chief marketing strategist at National Securities, hinted about higher S&P 500 volatility. Any burst in market volatility could impact investors.
The US and Iran tensions have risen since the China trade war. Defensive investments might come into focus again due to increasing geopolitical tensions.
Investing in silver and gold isn’t for everybody, but precious metals can be a great option. Learn more about your options—from physical metals to ETFs.
After taking some time off, recession fears have again started raising their ugly heads. Barclays’ chief US economist Michael Gapen shares this view, too.
Amid the trade war, weakening economic indicators, and the yield curve inversion, Jeffrey Gundlach believes the Fed has lost control of interest rates.
Ray Dalio forecasts a 40% chance of recession before the 2020 presidential election. He said the economy could head for its worst in two to three years.
Ray Dalio mentioned in a LinkedIn post on Wednesday that it’s important for investors to explore the market paradigm in which they’re currently operating.
Among miners, Eldorado Gold (EGO), New Gold (NGD), IAMGOLD (IAG), and Barrick Gold (GOLD) have seen the highest gains of 50.6%, 44.4%, 40.3%, and 36.4%, respectively.
Standard Chartered precious metals analyst Suki Cooper is very positive about gold’s price outlook. As reported by CNBC, she said, “There’s a lot more interest in gold on a widespread basis. It’s not just tactical investors or ETF holders. it’s broad based.”
BoAML (Bank of America Merrill Lynch) is overweight on precious metals in 2019. It believes that gold could be the big winner of the trade war between China and the US, as there’s no end in sight to the tensions.
Morgan Stanley (MS) is another investment bank that’s warming up to gold. As reported by CNBC, Morgan Stanley’s commodity strategist, Susan Bates, said that gold is the company’s number-one commodity pick.
Goldman Sachs (GS) has long been bullish on gold. In March 2018, the bank turned positive on gold (IAU) for the first time in more than five years. It’s since been advising investors to turn defensive due to its forecast of increased risk, recommending that investors go for high-quality stocks and gold.
Since lower interest rate expectations, a weakening US dollar, and geopolitical factors pushed gold above its long-term resistance of $1,350 per ounce, technical factors seem to have taken over.
US stock markets are recording higher highs. The S&P 500 (SPY) closed June 20 at an all-time high of 2,954, while the Dow Jones Industrial Average (DIA) hit a record high on June 21 before slipping at the close.
Central banks’ actions affect gold prices, both directly and indirectly. Worldwide, central banks have been making dovish statements regarding the state of the global economy.
Gold is now trading close to a six-year high following the Fed’s dovish pivot at its June policy meeting. After being range-bound for the last five years, gold has finally broken out and its outlook is bullish.
Gold is outperforming stocks even when stock markets are making highs. The SPDR Gold Shares (GLD) has gained 8.7% in the last one month, and the VanEck Vectors Gold Miners ETF (GDX) has amplified that return by rising 21.1% in the same period.
Gold futures registered their single largest one-day jump of 2.8% on June 20 following the Fed’s dovish stance at its June meeting. While the Fed kept rates unchanged, it hinted at future rate cuts if the conditions warrant them, which sent gold prices soaring.
The overall investor sentiment has been bearish given the US-China trade tensions and deteriorating economic reports. In addition to bonds (BND), investors are also looking to gold due to its safe-haven appeal. Not only this, there are many other factors that are currently going in gold’s favor.
According to the latest Bank of America Merrill Lynch survey, government bonds are the most crowded trade. It is the first time in the history of BAML that the preference for Treasuries has topped the list. The US government bonds were cited by 27% of the fund managers, topping long tech trade, which came at the second position.
During DoubleLine’s investor webcast on June 13, Jeffrey Gundlach said, “I am certainly long gold.” His call on gold is based on his expectation that the US dollar (UUP) will finish lower this year.
Could there soon be a recession? “Bond king” Jeffrey Gundlach thinks so. He shared his views regarding the Fed, markets, recession, and strategies to hedge against the slowdown during a DoubleLine investor webcast on June 13.
Fed rate cuts Fed policymakers are set to meet on June 18 and 19. Whereas the market has not priced in a rate cut in June, at least two rate cuts are expected by the end of the year. Amid the overall slowdown, US employment had been a bright spot until last month’s jobs report showed fissures may be appearing in the […]
After the recent risk-off environment following the escalation of the trade war between the US and China after Trump’s tweet on May 5, the SPDR Gold Shares ETF (GLD) and the VanEck Vectors Gold Miners ETF (GDX) have gained 4.3% and 13.2%, respectively.
It has been difficult to predict gold movement this year—economic reports have been more or less mixed and US-China trade deal optimism has curbed gold prices.
Wells Fargo’s head of real asset strategy said that gold no longer looks attractive based on the way the metal has been behaving in response to recent economic events.
Analysts’ revenue estimates for gold miners (GDX) are important to track as they give us a good idea about their gold price (GLD) outlook and production.
