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 ...
Actually, I’m more concerned about it starting before January 20th and going into full swing in a couple of HOURS.
https://grandpappy.org/eonehour.htm
And Bill Bonner explains the details and catalyst:
https://www.youtube.com/watch?v=6PqFYMZpBxw
If gold goes down, that means you should buy more gold.
If gold goes up, the means you should buy more gold.
If gold stays the same, that means you should buy more gold
Buy Gold! /s
Yes...Gold will for a time still be the commodity we value as it is still rare...and exspensive to mine,beyond its qualities in applicable use...national treasuries are making gold THE thing while they print paper that can become worthless with no actual backing....Good for you when cashing in...”put your money back from whence it came and your more than likely to see it again.”
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