BTC iShares Gold Trust

Gold (IAU) (GLD) prices usually have a strong negative correlation with the US dollar (UUP). Gold, like other commodities, is denominated in the dollar.

When the Federal Reserve chair, Janet Yellen, testified to Congress on February 11, she affirmed the Fed’s consideration of negative interest rates. Under a negative interest rate scenario, investors would pay interest to the bank for holding their money.

If you’re preparing your portfolio for the short term, the allocation to cash should be high. As the horizon increases, allocation to cash should go down.

Ray Dalio increased Bridgewater Associates’ stake in the SPDR Gold Shares (GLD) and the iShares Gold Trust ETF (IAU).

Among major gold (GLD)(IAU) mining and gold streaming companies (GOAU), Wheaton Precious Metals (WPM) is analysts’ favorite and has received the most “buy” recommendations at 91%.

This is the fifth up day for gold prices in the last ten days. Prices increased by 0.72% more on the average up days than on the average down days over the last ten trading sessions.

During the past week, average hourly earnings, excluding the farming industry, were below analysts’ expectation of 0.10%.

One of the dominant financial trends of the past decade has been a move by investors out of actively managed funds and into passively managed index funds or exchange traded funds (ETFs).

With selling pressure removed, normal gold demand trends may re-emerge Historically, there is a seasonal pattern to gold prices dependent on physical demand trends. Often, there is weakness in the summer when jewelry demand, primarily from China and India, is low and trading volumes decline. Seasonal strength often occurs from August to January, beginning with […]

Gold prices tend to rise in the fourth quarter of the calendar year. Gold prices have gained an unannualized ~3.8% in the fourth quarter.

Gold certainly can be an inflation hedge, and it has worked in the past. Obviously, one of the reasons gold has been weak of late is that people are becoming less concerned about inflation.

Barrick Gold (GOLD) reported AISC of $788 per ounce and a cost of sales of $980 per ounce in the fourth quarter.

When it comes to investing in stocks, Berkshire Hathway’s (BRK.A) chair, Warren Buffett, and Bridgewater’s founder, Ray Dalio, have similar advice.

According to the gold demand trend released by the World Gold Council on January 31, annual gold demand increased by 4% in 2018.

Gold’s price dipped 0.13% to $1,312.8 per ounce on May 9. The fall in gold was extended for a number of reasons.

Besides ongoing geopolitical concerns, a crucial factor that gold keeps looking to for directional moves is the US dollar.

Investors (SPX-INDEX) around the world looked to gold (GLD) (IAU) for the rescue during the slump in bitcoin prices.

A quick look at the relationship between the two core precious metals, gold and silver, could also be helpful in the analysis of the overall precious metals market.

In this article, we’ll discuss the gold-silver, gold-platinum, and gold-palladium spreads. These three spreads stand at 77.9, 1.38, and 1.23, respectively.

Gold, silver, and platinum all had a down day on Tuesday, December 13, mainly due to speculations over the Federal Reserve’s pending interest rate decision.

All four precious metals saw a down day on Monday, December 4, 2017, after the US dollar, in which the four metals are priced, rose $0.39%, propelled by the Senate passing its tax reform bill.

For India, gold imports have fallen 16% in value to ~$2.9 billion in October 2017 compared to $3.5 billion in the corresponding month last year.

Besides the impact of interest rates, there are also other global indicators that could play on precious metals—the most important being the US dollar.

Gold, silver, platinum, and palladium have a five-day trailing loss of 0.67%, 0.44%, 1.1%, and 1.5%, respectively.

As of October 19, Sibanye Gold, Agnico Eagle Mines, Silver Wheaton, and Randgold Resources had implied volatility readings of 63%, 33.6%, 30.8%, and 25%.

All the four precious metals saw an up day on Monday, October 9, 2017.

Like silver, platinum has industrial uses and has seen growing demand in China.

Gold futures for September expiration have risen ~3.9% over the past one-month period. Silver, platinum, and palladium have followed the same track as gold.

Bitcoins can be sent across borders. Bitcoin payment will be the same as paying someone in the same country. People don’t use gold much anymore.

The safe havens that benefit the most in times of uncertainty include gold (GLD) and U.S. Treasuries (GOVT).

When reading the platinum market, it’s important to look at the relative performance of platinum and gold by using the gold-platinum ratio.

The gold-silver spread measures the price of one ounce of gold in relation to silver.

The platinum industry is now headed for its third-straight year of surplus, likely due to the higher demand for petroleum-based cars.

Geopolitical risks had been playing on haven bids for precious metals, but now, we may be seeing to be a temporary respite—however brief—from global worries.

All four precious metals witnessed a rise in price on Monday, March 20, as the US dollar slipped to its six-week low.

The gold-platinum spread was ~1.2 on January 11, 2017. Platinum’s RSI (relative strength index) was 38.

In December, the AAOIFI and the WGC (World Gold Council) issued, for the first time, Shari’ah standard to deal with the use of gold (GDX) (GDXJ) as an investment in the Islamic finance industry.

Large speculators and traders continued to reduce their bullish net positions in gold futures markets last week for the eighth consecutive week.

Gold prices for February expiration fell on the last trading day of the year. Gold fell 0.53% and closed at $1,152 per ounce on December 30, 2016.

Gold has fallen below $1,300 per ounce and broken below the longer-term trend line that had been established this year.

Demand from India Could Lend Support In the near term, India could lend support to the gold market. Indian gold demand has been very weak this year due mainly to the higher gold price. This suggests there is pent-up demand. A good monsoon season in India can lead to a bountiful fall harvest that typically […]

The Fed has probably never tightened rates in past cycles with indicators so weak. In fact, at this point in the business cycle, a more normal stance would be to hold steady, looking ahead to a time when it might cut rates. Because of this, we believe any decision to raise rates in 2016 will […]

This year, gold prices had risen by 24% as of September 19. Gold prices fell in August due to the Fed’s hawkish stance.

Kinross Gold (KGC) announced in June 2016 that it was temporarily halting its mining and processing activities at the Tasiast mine in Mauritania.

In the 1990s and 2000s, when gold prices tracked inflation, although the correlation seems to be a bit weak compared to the 1970s and 1980s.

J.P. Morgan’s analysis states that gold has outperformed equities, bonds, and a broad commodities index in a low interest rate environment.

Generally, gold is viewed as a hedge against rapid inflation and lower interest rates. That makes it hard to value gold as there are no cash flows or earnings associated with it.

The World Gold Council predicted that India’s gold demand in the October–December quarter would be muted. Gold imports shrank 36.5% to $3.53 billion in November.

It’s important to understand not only miners’ geography but also their revenue composition in terms of commodity exposure.

Newmont Mining outlined its capital allocation priorities. Management mentioned that they aim to fund their projects through cash generated from core operations.