Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Gold Suffers Worst Loss Since 2013 On Brexit, Fed; Mining Stocks Crash
Investors Business Daily ^ | 10/04/2016 | JED GRAHAM

Posted on 10/05/2016 3:32:49 AM PDT by expat_panama

Brexit is back in the news, but this time it's weighing on gold prices and gold mining stocks. The difference: Unlike in June, there's no real panic, just a vague sense of foreboding, but nothing bad enough to keep the Federal Reserve from raising interest rates.

December gold closed down 3.3% to $1,269.70 an ounce on Tuesday, the biggest one-day decline since December 2013. It was the sixth straight losing session as gold undercut a key technical level.

Gold price moves have a big impact on the profitability of gold miners, which tumbled on the stock market today...

...A stronger dollar and tighter Fed also can be a negative for emerging markets...

...central bank divergence is a recipe for a stronger dollar. The U.S. dollar index, which tracks the greenback against a basket of developed market currencies rose 0.5% on Tuesday to 96.14, hitting its highest level since early August. Meanwhile, the British pound fell to $1.27, its lowest level since 1985, down from $1.48 before the Brexit vote.

On Tuesday, markets were still pricing in 63% odds of a quarter-point rate hike at the Fed's Dec. 14 meeting, according to CME Group's FedWatch tool.

A stronger dollar tends to make gold less essential as a store of value — at least in the absence of a global panic. Despite the higher dollar, which is a negative for the dollar-based earnings of U.S. multinationals, major stock indexes were mixed in early afternoon trade on Tuesday, meaning that most investors are taking the latest Brexit news in stride for now.

(Excerpt) Read more at investors.com ...


TOPICS: Business/Economy; Government; News/Current Events
KEYWORDS: economy; gold; goldprice; investing
Navigation: use the links below to view more comments.
first 1-2021-24 next last

1 posted on 10/05/2016 3:32:49 AM PDT by expat_panama
[ Post Reply | Private Reply | View Replies]

To: expat_panama

What’s in your safe?


2 posted on 10/05/2016 3:40:34 AM PDT by New Jersey Realist (America: The land of the free because of the brave)
[ Post Reply | Private Reply | To 1 | View Replies]

To: expat_panama

So buy more now or wait for it to drop more?


3 posted on 10/05/2016 3:43:49 AM PDT by airborne (I don't always scream at the TV but when I do it's hockey playoffs season!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: expat_panama

Gold was $276 an ounce in 2001. Now it’s at $1260, which is down 3% since yesterday, and this is a “crash”?


4 posted on 10/05/2016 3:47:13 AM PDT by SeeSharp
[ Post Reply | Private Reply | To 1 | View Replies]

To: expat_panama
A factor might be that the Shanghai Bullion Exchange is closed for the week. The Chinese would scarf these cheap metals up if they could.

It's really just paper that is down.

5 posted on 10/05/2016 3:54:09 AM PDT by chopperman
[ Post Reply | Private Reply | To 1 | View Replies]

To: expat_panama
Gold Price Per Ounce $1,275.50 +$5.90
6 posted on 10/05/2016 4:04:59 AM PDT by Robert DeLong
[ Post Reply | Private Reply | To 1 | View Replies]

To: 1010RD; A Cyrenian; abb; Abigail Adams; abigail2; AK_47_7.62x39; Alcibiades; Aliska; alrea; ...

 

Good morning and what the heck is going on here?  Sure, stocks dropped yesterday a fraction of a % in rising albeit limp trade, but this rout w/ precious metals (imho) is hard to understand.  Futures see this worsen and they got gold -3.22% and silver -5.42% --and meanwhile they're ho-hum w/ stocks.

Maybe it's these econ stats today:

7:00 AM MBA Mortgage Index
8:15 AM ADP Employment Change
8:30 AM Trade Balance
10:00 AM Factory Orders
10:00 AM ISM Services
10:30 AM Crude Inventories

or this stuff:

Why Americans Feel Poor (In One Chart) - Narayana Kocherlakota, BV
Here's The One Tax Idea That Is Fair to All Americans - Brett Arends, MW
3 Reasons Why This Market Has Everyone Spooked - Aaron Task, Fortune
It's One Big Market Casino Created by Central Banks - Bill Gross, Janus
The Stock Market Enters a Precarious Position - Sam Ro, Yahoo Finance
Market Corrections? Why You Shouldn't Worry - Simon Moore, Forbes
The Market Outlook: A Little Too Buoyant? - Elizabeth Collins, Morningstar
Sliding Sterling Is a Long Way From a Crisis - Swaha Pattanaik, Reuters


7 posted on 10/05/2016 4:05:38 AM PDT by expat_panama
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeeSharp

in December 1980 gold was $1361 adjusted for inflation a $10,000 investment would now be worth #3,421. Anyone can cherry pick a starting date. 2001 was the absolute bottom of a valley that I picked the peak of.


8 posted on 10/05/2016 4:06:38 AM PDT by Woodman
[ Post Reply | Private Reply | To 4 | View Replies]

To: SeeSharp

In December 1980 gold was $1361 adjusted for inflation a $10,000 investment would now be worth $3,421. Anyone can cherry pick a starting date. 2001 was the absolute bottom of a valley that I picked the peak of.


9 posted on 10/05/2016 4:07:59 AM PDT by Woodman
[ Post Reply | Private Reply | To 4 | View Replies]

To: expat_panama

Gold bounced today but the chart is still shaky. Oil pushing up also. Toooo much money looking for a return.


10 posted on 10/05/2016 4:08:47 AM PDT by mad_as_he$$
[ Post Reply | Private Reply | To 7 | View Replies]

To: mad_as_he$$

Silver just spiked to over 100.00 on the real time, tick by tick chart I use.

https://dwq4do82y8xi7.cloudfront.net/widgetembed/?symbol=OANDA%3AXAGUSD&interval=1&saveimage=0&toolbarbg=f1f3f6&studies=&hideideas=1&theme=White&style=1&timezone=UTC&studies_overrides=%7B%7D&overrides=%7B%7D&enabled_features=%5B%5D&disabled_features=%5B%5D&utmsource=www.livecharts.co.uk&utmmedium=www.livecharts.co.uk/MarketCharts/silver.php

Anyone else use a tick by tick live chart???


11 posted on 10/05/2016 4:11:28 AM PDT by Gadsden1st
[ Post Reply | Private Reply | To 10 | View Replies]

To: Gadsden1st

Whoa! Interesting.

I use tbyt charts when I am able to spend my time with focused just on the markets - which isn’t much these days.


12 posted on 10/05/2016 4:14:58 AM PDT by mad_as_he$$
[ Post Reply | Private Reply | To 11 | View Replies]

To: expat_panama

It starts with deflation, followed by inflation, followed by hyperinflation. We are still in the deflation stage.


13 posted on 10/05/2016 4:23:25 AM PDT by Mr. Douglas (Today is your life. What are you going to do with it?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: New Jersey Realist

AMMO


14 posted on 10/05/2016 4:41:38 AM PDT by maddog55 (America Rising a new Civil War needs to happen.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: airborne

I’ll wait on Au until December, after the Fed either moves on interest rates or not. Of course I could be totally wrong :)


15 posted on 10/05/2016 5:16:56 AM PDT by JonPreston
[ Post Reply | Private Reply | To 3 | View Replies]

To: expat_panama
Buy on the dips!


16 posted on 10/05/2016 5:30:40 AM PDT by Jack Hydrazine (Pubbies = national collectivists; Dems = international collectivists; We need a second party!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: airborne

Never try to catch a falling knife


17 posted on 10/05/2016 5:37:06 AM PDT by Roccus (When you talk to a politician...ANY politician...always say, "Remember Ceausescu")
[ Post Reply | Private Reply | To 3 | View Replies]

To: expat_panama

Suffers WORST LOSS?...I remember being surprised when it got to 400-450 an ounce...it is at 1200 plus dollars..what a B S article...waste of electronic type and time...Hey the sky is still falling.My Gripe might seem foolish but I see articles like this as just being written for writings sake ... none of this 3.3% dip means shite!


18 posted on 10/05/2016 5:45:32 AM PDT by mythenjoseph (Separation of powers)
[ Post Reply | Private Reply | To 1 | View Replies]

To: expat_panama

I expect gold to drop a lot more if Trump is elected. However, if Hillary seizes power, I expect precious metals to be priced at levels never imagined.


19 posted on 10/05/2016 8:42:17 AM PDT by Pollster1 (Somebody who agrees with me 80% of the time is a friend and ally, not a 20% traitor. - Ronald Reagan)
[ Post Reply | Private Reply | To 1 | View Replies]

To: mythenjoseph
I remember being surprised when it got to 400-450 an ounce.

That brought a smile to my face. I had just finished reading Harry Browne's prophetic "How you can profit from the coming devaluation" and started buying British Sovereigns at $12.50 each. When gold hit $105, I thought "Game Over" and cashed out, kissing my hands over my cleverness at calling the market.

I was astounded when it hit $140 and was still going strong, so got back in at $150. Sold that lot at $600+ as "it CAN'T go any higher". Kissed my hands again.

Gold was at $850 when my son mentioned in class that we had sold some gold coins and the teacher interrupted, saying that I was foolish as "Now is the time to buy!".

It was one of those rare times in history where you could be consistently wrong and still make a small bundle.

20 posted on 10/05/2016 8:45:55 AM PDT by Oatka (Beware of an old man in a profession where men usually die young.)
[ Post Reply | Private Reply | To 18 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-24 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson