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 ...
What’s in your safe?
So buy more now or wait for it to drop more?
Gold was $276 an ounce in 2001. Now it’s at $1260, which is down 3% since yesterday, and this is a “crash”?
It's really just paper that is down.
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
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.
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.
Gold bounced today but the chart is still shaky. Oil pushing up also. Toooo much money looking for a return.
Silver just spiked to over 100.00 on the real time, tick by tick chart I use.
Anyone else use a tick by tick live chart???
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.
It starts with deflation, followed by inflation, followed by hyperinflation. We are still in the deflation stage.
AMMO
I’ll wait on Au until December, after the Fed either moves on interest rates or not. Of course I could be totally wrong :)
Never try to catch a falling knife
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!
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.
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.
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