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Precious Metals

Global Market

Global Stock Markets Lifted By Upbeat Yellen Speech

By , Money Morning - • Print | Email

World stock markets were mostly firmer overnight. U.S. stock indexes are also pointed toward modestly higher openings when the New York day session begins. Federal Reserve Chair Janet Yellen delivered a speech Tuesday that sounded an arguably hawkish tone on U.S. monetary policy, and an upbeat tone on the U.S. economy. The world equity markets took this as a positive sign that a strengthening U.S. economy and rising inflation will help the other major industrialized countries' economic growth prospects, as well as reignite some wanted inflation.

Gold prices are lower in pre-U.S.-day-session trading Wednesday. The surging U.S. dollar this week is a bearish element for the precious metals markets, as well as other raw commodity markets.

The U.S. dollar bulls are on a roll this week, as the U.S. dollar index is higher and hit a five-week high overnight.

Global Market

Global Equity Markets Pull Back On Some Risk Aversion

By , Money Morning - • Print | Email

World stock markets were mostly weaker overnight, as some risk aversion is back in the marketplace following Monday’s latest salvo from North Korea, in which the isolated nation said the U.S. had declared war on it. North Korea also said it had the right to shoot down U.S. warplanes outside of its air space. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins.

However, traders and investors are getting somewhat desensitized to the war of words between the U.S. and North Korea.

Gold prices s are moderately lower in pre-U.S.-day-session trading, on a corrective pullback from good gains posted Monday.

Global Market

Global Markets Mixed; German Elections Quickly Digested By Marketplace

By , Money Morning - • Print | Email

World stock markets were mixed in overnight trading. The German elections held over the weekend saw Chancellor Angela Merkel secure a fourth term.

However, voters did make a shift to the right, which could make it more difficult for Merkel to form a coalition. The elections had little impact on world markets. U.S. stock indexes are pointed toward slightly lower openings when the New York day session begins.

Gold prices are trading near unchanged. Silver prices are also trading near steady. The firmer U.S. dollar index Monday is a daily bearish element working against the precious metals markets.

Gold

Here’s the Secret to Timing Gold Perfectly (and Playing It Profitably)

By , Liquidity Specialist, Money Morning - • Print | Email

The U.S. government holds 261.5 million ounces of gold.

Now, a government holding gold is not all that unusual. Lots of them do, all over the world.

This is: Uncle Sam doesn't mark to market!

It just carries the stuff at the nominal value of $42 an ounce, which is about 3% of its market value.

So it pretends that it's not worth much. The U.S. Federal Reserve shows its gold holdings are "worth" $11 billion – enough to cover any hiccups that might arise from its once-radioactive, still-vulnerable mortgage-backed securities.

But at current market prices, the U.S. government's gold reserve is worth close to 30 times as much as the books show – about $329.5 billion. 

I guess that's the government's "insurance policy."

Me? I see gold not so much as an insurance policy but as a store of value, similar to any other investment. We know it can't go bankrupt. It's nobody's liability, but it sure does fluctuate in price.

In that respect, gold is just like any speculative investment. There's potential reward, and there's risk.

Timing is everything. And gold timing should not be a mystery.

Here's how it's done...

Global Market

World Stock Markets Up As U.S.-North Korea Tensions Perceived As Easing A Bit

By , Money Morning - • Print | Email

Global stock markets were mostly higher Monday, on some easing of fears the U.S. and North Korea are headed toward military conflict soon. The U.S. secretary of defense and secretary of state, as well as other Trump administration officials, on Sunday said they are trying to achieve denuclearization of North Korea through diplomacy. Also, China on Monday said it has banned key North Korean imports.

Gold prices are weaker on some profit-taking from shorter-term futures traders and on a corrective pullback from recent gains. A slightly less risk-averse marketplace on Monday is also a negative for safe-haven gold.

In other overnight news, the Euro zone reported its industrial output was down 0.6% in June from May, and up 2.6%, year-on-year.

Global Market

World Equity Indexes Mostly Up; OPEC Meeting In Focus

By , Money Morning - • Print | Email

World stock markets were mostly firmer in overnight trading, following the gains posted on Wall Street Friday. Focus early this week is on a two-day OPEC meeting. U.S. stock indexes are pointed toward firmer openings when the New York day session begins.

Gold prices are weaker on some follow-through selling pressure from Friday's losses that came in the wake of an upbeat U.S. jobs report that favored U.S. monetary policy hawks who would rather see another Fed rate hike soon.

The U.S. dollar index rallied following the jobs report and closed at a bullish weekly high close Friday.