Despite improved economic indicators and optimism among Fed policymakers, in all truth, the economy remains anemic – and will continue to underperform for a very long time to come, suffering from what some economists have labeled “secular stagnation.” The latest economic data show a bounce back from the harsh winter interruption in activity – not an improvement in the underlying fundamentals as wishful thinkers believe.Read more
The past few weeks have been trying times for gold investors. Just when it looked like gold was set to break out into higher territory, the market shifted into reverse, leaving many investors and analysts wondering what was going on. To put some numbers on it, gold has now dropped some eight percent from its March 17th six-month high and is now hovering just above the technically significant $1280 support level.Read more
I’ve been surprised by the recent decline in the price of gold. I expected a stronger finish to the first quarter with gold somewhat higher – possibly even breaking out above the $1,400 an ounce level by the end of March – but this will now have to wait.
Two recent developments shifted trader expectations and triggered the recent round of selling:Read more
Russian saber-rattling sent gold over $1,350 an ounce earlier this week, its highest price in four months. But, contrary to many press reports, it was neither safe-haven demand nor physical buying that fueled gold’s short-lived price advance.Read more
Jeffrey Nichols, Senior Economic Advisor to Rosland Capital, had the following comments on the current gold-market situation and outlook:
So far, 2014 has been a year of recovery for gold. Trading recently near $1,320 an ounce, the metal is already up some 10 percent from its 2013 year-end price of $1,201.50 in the London bullion market.
Gold’s improvement was apparently quite a surprise to many of the most prominent analysts and investors who, forecasting the price through a rear-view mirror, expected prices to head further south. With gold possibly on a sustainable upswing, they are now busy jacking up their gold-price targets.Read more
Jeffrey Nichols, Senior Economic Advisor to Rosland Capital, had the following comments on the current gold market situation and outlook:
Over the past few years, as the broad equity-market averages moved from one high to the next, institutional investors – seeking higher quarter-to-quarter returns – moved out of physical gold and into stocks – at least, that is, until very recently.Read more
NEW YORK (January 14, 2014) – Jeffrey Nichols, Senior Economic Advisor to Rosland Capital (www.roslandcapital.com), had the following comments on the current gold-market situation and outlook:
It’s been a rough few years for gold investors – but despite the yellow metal’s fall from grace, I remain solidly bullish on gold’s long-term prospects. In my book, the metal’s price will, more likely, reach $3,000 or even $5,000 an ounce in the years ahead than sink beneath $1,000 an ounce.Read more
NEW YORK (December 23, 2013) – Jeffrey Nichols, Senior Economic Advisor to Rosland Capital (www.roslandcapital.com), had the following comments on the current gold-market situation and outlook:
The Fed’s latest change in monetary policy has been no gift for gold investors.
Gold prices have been under pressure in recent days following last week’s announcement by Federal Reserve Board Chairman Ben Bernanke that the Fed would commence “tapering,” – that is, cutting back its monthly bond purchases by a relatively modest $10 billion in January – and continuing its withdrawal of monetary stimulus in subsequent months “in further measured steps” if the economic recovery stays on track.Read more
NEW YORK (December 12, 2013) – Jeffrey Nichols, Senior Economic Advisor to Rosland Capital (www.roslandcapital.com), had the following comments on the current gold-market situation and outlook:
A number of bearish forces have contributed to the downward trend in gold price during the past couple of years. One important, but not generally recognized, factor has been the large-scale proprietary trading activities of a handful of bullion-dealing banks in both futures markets and over-the-counter markets.Read more
With the Dow topping 16000 and the S&P500 index reaching 1800 – both psychologically important levels – gold continues to be an innocent victim of the frenzy on Wall Street.Read more