PowerShares DB US Dollar Bullish ETF

China continued buying gold for the tenth consecutive month in September. The country also continued its de-dollarization bid.

Gold hit a fresh six-year high on Friday as trade tensions between the US and China escalated. The SPDR Gold Shares ETF (GLD) closed up 2%.

Today, President Trump tweeted that he wants the Fed to cut the federal funds rate by “at least 100 basis points.” The Fed rates by 25 basis points in July.

The US Dollar Index, which measures the strength of the dollar against a basket of other currencies, has risen 2.2% in the past month.

US automakers have been hit hard lately. However, President Trump’s policies and the trade war had a greater impact on automakers than the Fed’s policies.

Gold prices received a boost after President Trump’s tweet that 10% duties would be levied on $300 billion of Chinese goods starting on September 1.

The market and investors have been holding their breath for a Fed rate cut this year.

Gold prices have seen a change in fortunes over the last month or so.

After remaining soft for the first five months of the year, gold prices (GLD) have seen a sudden turnaround since the end of May.

The US dollar’s weakness may be a major driver behind gold’s higher prices.

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.

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 […]

Paul Tudor Jones has told Bloomberg that he expects an aggressive but short period of rate cuts by the Fed, which is set to meet on June 18 and 19.

Gold has caught a bid in the last few days after being lukewarm for most of this year.

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.

According to the latest Bank of America Merrill Lynch survey, US tech was the most crowded space, displacing short European equities (HEDJ).

Bank of America is overweight on precious metals in 2019. One of the key arguments that Bank of America has is “de-dollarization.”

JPMorgan Chase (JPM) thinks that gold prices (GLD) should go higher. Right now, the Fed is patient on rate hikes.

According to the latest Bank of America Merrill Lynch survey, shorting European equities has been the most crowded trade for two months in a row.

Jeffrey Gundlach believes that if the equities do well this year, emerging market equities will do better than US stocks (SPY) (DIA).

Vale’s (VALE) iron ore production came in at 101 million tons in the fourth quarter of 2018, an increase of 8.2% YoY (year-over-year).

As with the biggest tail risk, the latest Bank of America Merrill Lynch Survey resulted in a new “most crowded trade” response as well.

The Federal Reserve’s two main objectives are stabilizing prices and maximizing employment.

During his “Highway to Hell” webcast, Jeffrey Gundlach put forth several arguments for a bearish long-term outlook for the US dollar (UUP).

Gold prices (GLD) fell by over 2.5% in the week ended March 1, their biggest weekly decline since August 2018.

The Federal Reserve has two main objectives: price stability and maximizing employment.

For the first time in the history of the Bank of America Merrill Lynch Survey, “long” emerging markets (EEM) has been the most crowded trade for February.

In this article, we’ll see if central bank buying can drive gold demand in 2019 like it did in 2018.

Gold prices rose ~1.4% to a seven-month high on January 25. Gold prices briefly breached the psychologically important $1,300 per ounce mark.

Jeffrey Gundlach said during Barron’s 2019 Roundtable that “Gold and commodities broadly should benefit this year.”

2019 has started on a relatively soft note for gold prices.

Ray Dalio discussed his take on the slowdown in China and how it could impact worldwide growth at the World Economic Forum in Switzerland.

Gold prices have started 2019 on a relatively soft note. YTD (year-to-date), as of January 17, gold prices (GLD) have risen 0.7%.

For the second straight month, the so-called FAANG and BAT stocks weren’t the most crowded trades.

So-called bond king Jeffrey Gundlach, who is also the CEO of DoubleLine Capital, has made his predictions for 2019 on a variety of topics.

Like the Fed’s policies, the strong US dollar (UUP) impacted gold prices (GLD) this year.

In this series, we’ll look at what could influence gold demand as we step into 2019.

Unlike other banks, BNP Paribas has a negative bias for gold going into 2019. Harry Tchilinguirian, global head of commodity markets strategy at BNP Paribas, is negative on gold (SGOL)(GLD).

Bank of America Merrill Lynch (BAML) is overweight on precious metals going into 2019.

Goldman Sachs (GS) turned positive on gold (GLD) for the first time in more than five years back in March.

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 a large part of the year, gold prices (GLD) have languished due to a strong US dollar (UUP), hawkish Fed rate hike outlook, and rising equity markets.

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.

According to the Bank of America Merrill Lynch Survey, the US dollar (UUP) replaced the FAANG and BAT stocks as the most crowded trade.

In a report published on November 26, Goldman Sachs (GS) stated that commodities (COMT) could climb 17% in the coming months.

The US dollar (UUP) has been on an upward trajectory in 2018 so far. Year-to-date, it’s up ~7.4% compared to other major global currencies.

Last week turned out to be great for gold prices (GLD). As equity and bond markets continued to struggle, gold made the best of the situation.

The World Gold Council (or WGC) chief Market Strategist and Head of Research, John Reade, analyzed gold’s performance in 2018.

There is a lot of uncertainty and volatility in the current economic macro environment with trade tensions continuing and geopolitical issues ramping up.

The US dollar (UUP) has continued to strengthen this year. Ongoing US-China trade tensions are making investors nervous.

On December 3, global markets rose due to the US-China trade war truce. The agreement eased concerns about the coming global slowdown.

Markets had been worried about the Fed’s continued aggressive stance on rate hikes, which could shorten economic expansion.

Apple (AAPL) posted better-than-expected earnings and revenue in the fourth quarter of fiscal 2018.

After a calm period in stock markets, downside risks have increased.

Similar to other investment banks, Morgan Stanley (MS) doesn’t have high hopes for US markets in 2019.

During the third quarter, gold’s price fell ~5%, dipping below the psychologically important level of $1,200 per ounce it touched in August.

Trade wars muddying US economic outlook Another factor impacting the US (SPY) growth outlook is the unfolding of the trade war between the US (SPY) (DIA) and China (FXI). The US has already imposed three rounds of tariffs on Chinese imports covering a total of $250 billion worth of imports, which have been met with […]

According to the World Gold Council (or WGC), central banks’ gold (SGOL) buying has hit the highest level in almost three years for the quarter ended September 2018.

Bank of America analysts contend that gold prices (GLD) should surge over the next year.

The US dollar (UUP) has been on a fairly upward trajectory in 2018 thus far.

Gold prices (GLD) saw their first monthly gain in the last seven months in October when prices rose by 2.1%.

For the tenth consecutive month, the so-called FAANG and BAT stocks remained the most crowded trades.

Bank of America Merrill Lynch conducted a survey of 225 investors with $641 billion in total assets under management between November 2 and November 8.

Since the start of this year, there has been a severe fall in the prices of almost all commodities like copper, nickel, lead, cobalt, and gold.

Gold and gold miners have recovered in October after consolidating in September. However, gold and gold miners have declined year-to-date.

Emerging markets (EEM) saw tremendous growth last year and grabbed investors’ attention.

Gold prices have failed to draw a bid in 2018 despite many market uncertainties, including trade tensions and other geopolitical concerns.

One of the major market worries at the core of the current market sell-off is the coming earnings deceleration.

The Dow Jones Industrial Average Index tumbled more than 800 points yesterday as Treasury yields continued their upward march.

The White House has acknowledged that the deficit is growing faster than it had expected.

The US dollar (UUP) has been on a fairly upward trajectory in 2018 thus far.

Central banks have been net buyers of gold (SGOL) since the beginning of the financial crisis of 2008.

Gold prices dropped for the sixth straight month in September.

The robust U.S. dollar has weighed on gold since May, and in August the U.S. Dollar Index (DXY)1 again reached new yearly highs.

As widely expected, the Federal Reserve increased the interest rate (TLT) yesterday by 25 basis points to 2%–2.25%.

Gold investors have been puzzled by the way gold prices are falling amid ramped-up trade tensions and emerging market crises.

In the past few years, one of the factors fueling US equity markets has been cheap money. The end of easy money could put the brakes on the economy.

A record number of fund managers in the BAML September survey believe that gold is undervalued, trading at a 17-year low.

It seems like fund managers can’t get enough of technology stocks. They continue to invest in the so-called FAANG+BAT stocks.

gold has not been able to draw safe-haven bids in 2018 so far, as the strong US dollar (UUP) keeps weighing it down.

The US’s fiscal deficit as a percentage of GDP was 3.4% in fiscal 2017 as compared to 1.1% in fiscal 2007.

The major beneficiary of the trade war in 2018 is the US dollar (UUP), which has been receiving safe-haven bids in the face of uncertainty.

The US dollar (UUP) made a comeback on September 14 after reports suggested that Donald Trump is planning to impose tariffs on Chinese goods worth $200 billion, despite trade talks.

The US CPI (consumer price index) for August rose 0.2% sequentially compared to the 0.3% growth that was expected by economists.

The SPDR Gold Trust ETF (GLD) has fallen ~8.4% year-to-date and ~11.5% from its April peak.

According to the COT report for the week ended September 4, money managers resumed building their short positions in gold futures.

According to the Institute of International Finance, the portfolio flows into emerging markets (EEM) slowed to $2.2 billion in August from $13.7 billion in July.

The manufacturing sector shed 3,000 jobs during August. This is the first time in the last year that the sector has cut jobs.

In July, the United States’ (SPY)(IVV) trade deficit rose to a five-month high and at its fastest rate since 2015.

It’s no secret that President Trump wants a weaker dollar to support the country’s exports.

Gold investors are waiting for the Fed’s meeting on September 25 and 26 for the rate outlook, as a September rate hike seems more certain.

China’s trade surplus with the US hit a record of $31 billion in August.

The US dollar (UUP) is gaining strength after a short dry spell.

In August, gold prices saw a fifth consecutive monthly decline, which is the longest streak in the last five and a half years.

As of 11:00 AM ET today, the SPDR Gold Trust ETF (GLD) was down 0.6%. Gold prices were already under pressure.

Trade war fears have taken a toll on industrial metals in 2018. Gold (GLD), which should have shined under these circumstances, is also reeling.

UBS strategist Joni Teves believes that the shorting of gold (GLD) “should ultimately be supportive” for the metal and allow “ample space for positions to be rebuilt ahead.”