Will a Constitutional Crisis Be the Next Major Catalyst for Higher Gold?

It seems as if there are few-if any-dull moments since President Donald Trump took office in January. When it became clear that Trump was going to be elected the 45th President of the United States, stocks rallied, bonds tumbled and gold got clobbered. Gold rebounded, however, and has seen a nice run in the last couple months despite some recent selling in the market. Some might argue that the yellow metal could be lacking any fresh, bullish catalyst to attract fresh buying interest. Some might... Continue Reading

Being Led to Slaughter?

Stock markets have been back on the offensive in recent action, and could be poised for a fresh leg higher into new all-time high territory. With the S&P500 trading just shy of the 2400 level and the Nasdaq trading over 6100, you have to wonder just how high markets could get before the bottom falls out. Trading has been slow and quiet, and volatility has remained very elusive. In fact, stock market volatility as measured by the CBOE’s VIX is currently at the lowest level... Continue Reading

Is Puerto Rico Just the First Domino to fall?

This week, Puerto Rico declared a form of bankruptcy as the island was left with no choice. Years of debt accumulation combined with ineffective government policies and other issues finally became too much for the island to bear, and the day of financial reckoning had arrived. This Puerto Rico bankruptcy could potentially have extremely far-reaching effects, and it should cause concern for U.S. citizens and investors. In short, the bankruptcy could bludgeon investors, undermine state and municipal governments and change the retirement plans of many.... Continue Reading

Do Treasuries Hold the Key to Higher Gold?

Although gold remains in an uptrend on the daily charts, the yellow metal has backed off some $50 per ounce from its recent highs. The gold market has been bid up in recent months on increasing geopolitical risks and other factors considered bullish for the metal. Not coincidentally, treasury yields have been rising in recent trade as the price of gold has been under some moderate pressure. Looking at the benchmark 10 year note, yields topped out shortly after the Trump election victory as the... Continue Reading

Could The Fed Be Stuck Between a Rock and a Hard Place?

The notion of additional interest rate hikes from the Federal Reserve has certainly weighed on the gold market in recent months. On the other hand, however, the pace and timing of any additional rate hikes remains likely to be slow and incremental, which could be considered bullish for gold. This week could potentially provide some very good clues as to the central bank’s plans going forward. Weakness in some key economic data, along with the current geopolitical landscape could potentially give the central bank reason... Continue Reading

Pullbacks are Great for Buying

The gold market is in the midst of a pullback from recent highs although the uptrend remains intact. Investors had been anxiously awaiting President Trump’s tax plans which did not seem to deliver much following the recent hype. In fact, the plans were fairly vague and will take significant time to work through. This begs the question of what could potentially be the next bullish catalyst for stocks. Earnings perhaps? A calming of geopolitical tensions? Perhaps a fiscal spending package? Although any one of these... Continue Reading

The Role of Gold in an Uncertain World

Heading into the weekend, investors may be feeling a bit of angst following another terrorist attack in France ahead of the first round of French presidential elections taking place this weekend. Following this weekend’s initial round, another round of elections will take place in early May. These elections have been a major topic in financial markets for some time now, and could potentially make or break the EU as it exists today. Other elections in the region could also impact the union going forward, and... Continue Reading

Geopolitics and Gold

The last week has seen some interesting developments in the world of geopolitics. Although much of investors’ attention has been focused on Russia and China in recent months, this week may be very indicative of exactly who may be enemy #1 right now for the U.S. North Korea has continued in its saber-rattling and appears set to continue in its quest for nuclear weapons. This nation (which some refer to as “rogue”), appears to be the single biggest threat to U.S. National security currently. Over... Continue Reading

Does Germany Know Something the Rest of Us Don’t?

In recent months, Germany has reportedly repatriated half of its gold reserves ahead of schedule. Bundesbank confirmed back in February that it had already moved 583 tons of gold out of New York and Paris. Germany’s plan to hold half of its gold in Frankfort is several years ahead of schedule. Many may be wondering why… There are numerous theories behind the rapid repatriation of the country’s gold. Some have suggested that Germany is looking to keep its gold close in case it is needed... Continue Reading

Should You Start To Worry?

Stocks are lower on Tuesday as ongoing risk aversion appears to be on the rise. Any why wouldn’t it? In the last week, the United States has struck Syria with 50 Tomahawk cruise missiles in retaliation for another chemical weapons attack unleashed by the country on its own innocent people. Russia has voiced its concerns over the U.S. military action taken, and relations between the U.S. and Russia could potentially deteriorate significantly if some common ground on the issue is not found-and found soon. To... Continue Reading