Fed Takes On Gold Unintentionally

Aibek Burabayev - INO.com Contributor - Metals


In my previous Gold & Silver post published earlier this month, I promised to update a long-term chart of Gold as I observed some interesting price behavior in a related instrument. But before I do that, let me speak about the Fed’s decision last Wednesday and that “related to gold” instrument first.

The positive dynamics of the US economy underpinned the Fed’s decision to finally start to trim its huge balance sheet next month, besides that there is a big chance of another rate hike this December. It wasn’t a shock to the market, and some big players already started their game weeks before the Fed moved from rhetoric to action.

The Fed’s decision could have a double impact on US interest rates as falling US Treasury notes increase the yields, and the impending rate hike could secure that situation. I was writing about the high possibility of this almost a month ago and last Wednesday we received a first-hand confirmation from the Fed. Continue reading "Fed Takes On Gold Unintentionally"

A Tumbling Copper Could Hit The Floor

Aibek Burabayev - INO.com Contributor - Metals


Greed is one of the strongest human motivators. It is easy to get greedy, but it is hard to push it down after it gets extreme. The main point of my previous update in August was to focus your attention on the price action in the $3 area as the price could hit this psychological level and then retreat. My advice was to book profits and wait to see what would happen next.

I hope that you heeded my advice and didn’t get greedy as copper was pushed down below the $3 level very quickly.

In the same post, I thought that this upside move in the metal that had started last year could just be a consolidation before another drop down. In the chart below I go into more details about it.

Chart 1. Copper Monthly

Monthly Chart Copper
Chart courtesy of tradingview.com
Continue reading "A Tumbling Copper Could Hit The Floor"

Gold & Silver: Beware Of Correction

Aibek Burabayev - INO.com Contributor - Metals


What goes up should come down. The precious metals are in a good bullish move, but one should be prepared for the possible downside corrections ahead as the natural phases of market cycles change again and again.

Chart 1. Gold Daily: Channel’s Top Hurdle

Daily Gold Chart
Chart courtesy of tradingview.com

When it comes to money, people start to excel in math, even if they didn’t in school. And so did I when it came to the market analysis, I started to understand both the beauty and power of geometry in the trends even though I didn’t like this subject in the school.

The price of gold made a tiny puncture on the upper side of the blue ascending channel but then retraced to close below it It’s another illustration of how powerful the trend channels can be. However, even if it gets broken, again, it will add more value as evidence of an even stronger price move.

There's almost $17 left for gold to hit the previous major top, but it vanished behind the channel’s top as does a setting sun behind the mountains. What’s next? It’s the perpetual question in the markets. Continue reading "Gold & Silver: Beware Of Correction"

These Stocks Could Offer A Bargain As Silver Soars

Aibek Burabayev - INO.com Contributor - Metals


Silver hit a 3-month high last week, but there is still plenty room for gains on the way to the conservative upside target above $21 level.

Last week I analyzed the top gold stocks, and I thought it would be interesting to look at the silver stocks to see if there are good opportunities amid Silver's growth. My previous update on the top silver stocks ranked by P/E was posted in July. This time I will use ROE (return on equity) as a selection criterion.

Table 1. Top Silver Stocks By Return-On-Equity (ROE)

Top Silver Stocks By Return-On-Equity (ROE)
Image courtesy of finviz.com

Top 3 silver stocks by ROE are SSR Mining Inc. (SSRM) (former ticker SSRI), Coeur Mining, Inc. (CDE) and Pan American Silver Corp. (PAAS) .

The leading silver stocks show pale performance compared to the top gold stocks, which have a ROE range between 10% and 30% while only one of the silver stock’s reading is above the 10% threshold. But the ROE above 8.5% is still an outstanding performance overall. Continue reading "These Stocks Could Offer A Bargain As Silver Soars"

Stocks To Watch Amid Gold's Rise

Aibek Burabayev - INO.com Contributor - Metals


Gold broke above both daily and monthly resistances, and we could witness a further strong move to the upside. In this post, I would like to find out if there are gold stocks with upside potential to follow the strengthening metal using my unique selection criteria.

When you buy stocks, you become shareholders of the company participating in the equity. That is why this time I decided to sort the gold stocks by ROE (return on equity) and chose the top 5 (in the table below) to analyze. The range includes stocks with a market cap over $300 million.

Table 1. Top Gold Stocks By Return-On-Equity (ROE)

Gold Stocks
Image courtesy of finviz.com

These top stocks tickers are ABX (Barrick Gold), SBGL (Sibanye Gold), IAG (IAMGOLD), GSS (Golden Star) and HMY (Harmony Gold Mining). Continue reading "Stocks To Watch Amid Gold's Rise"