Tag: Gold

Gold Chart of the Week

Posted on by The INO.com Team

Each Week Longleaftrading.com will be providing us a chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.

Weekly Gold Report (January 7th through January 11th)

Welcome everyone to trading in 2013, where not much has changed from last year. While we are only a few days into the New Year, traders are already expecting the same type of market activity to continue for at least the next two months. Why two months? Because only a portion of the much anticipated “Fiscal Cliff” negotiations were completed at the end of 2012, so the saga will continue.

Politicians in the US knew for over ten years that they were expected to make a monumental decision by the end of the year in 2012 regarding taxes and spending, and in the eleventh hour a final decision was made to raise taxes and “kick the can” on spending for another two months. The idea was to come up with something fair and balanced, but it wound up being a  one-sided victory for one party. Despite the delay on fifty percent of the decision, it was enough to avoid a broad based panic sell.

All markets, including Gold will have to not only price in everyday news, they will also have the upcoming taxes vs. spending debate to consider. Overall, it is nothing new. Continue reading "Gold Chart of the Week" →

New Video: Fiscal Boom?

Posted on by The INO.com Team

Hello traders everywhere! Jeremy Lutz here with your mid-day market update for Wednesday, the 2nd of January.

Stocks continue to see considerable strength after moving sharply higher at the open. The markets continue to benefit from a positive reaction to news of the last-minute fiscal cliff deal in Washington, but will it last?

The news about the fiscal cliff agreement has largely overshadowed a report from the Institute for Supply Management showing a rebound by manufacturing activity in the month of December.

The ISM said its purchasing managers index climbed to 50.7 in December from 49.5 in November, with a reading above 50 indicating an expansion by the manufacturing sector. Economists had expected the index to climb to 50.5.

A separate report from the Commerce Department showed an unexpected drop in construction spending in the month of November.

Let's see what the Trade Triangles say about the markets today.

Every Success,
Jeremy Lutz

Click Here to view today's video

Leonard Melman Finds the Fiscal Cliff a Boon for Precious Metals

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The Gold Report: Leonard, what are the most pressing issues facing investors today?

Leonard Melman: Let's start with the fiscal cliff. If America falls into this abyss, the combination of tax increases and spending reductions will slow down economic growth. Interestingly, political leaders in Europe are calling for increasing taxes and decreasing spending in order to solve their problems. I find it amusing that the solution to economic problems being proposed by leaders on the European side of the Atlantic is thought to be the problem on the American side of the Atlantic.

TGR: How do you account for the disconnect?

LM: It is due to a philosophical inconsistency and a lack of economic understanding on the part of the world's political leaders, most of whom are not well qualified as economic thinkers, nor as philosophers for that matter.

TGR: How important is a philosophical stance to making a cogent economic analysis? Continue reading "Leonard Melman Finds the Fiscal Cliff a Boon for Precious Metals" →

Gold Chart of the Week

Posted on by The INO.com Team

Each week Longleaftrading.com will be providing us a chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.

Weekly Gold Report (December 24 through December 28th)

What a week in the Precious Metals! While the drop in Gold and Silver caught me off guard, I suppose I was not totally surprised. Every year around this time, global markets get thin and it leaves price action vulnerable to unexpected, directional movement.

There were a few factors outside of light volume that may have played a role in the drop. First of all, Washington continues to overpromise and underperform on their Fiscal Cliff negotiations. One of the main points that will remain in limbo without a compromise is taxes. I believe that a large part of the selloff in the Metals was due to traders and investors continuing to book gains on long positions ahead of a potential tax hike next year. Furthermore, these drops invite new sellers to the market that are hoping for a larger scale setback. Second, it was rumored that a large position in the Metals was adjusted after Morgan Stanley decided to drop Paulson and his Metals based investment strategies. Continue reading "Gold Chart of the Week" →

Rohit Savant Expects the Gold Bull Market to Pause in 2013

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The Gold Report: Rohit, in a recent interview you said gold is "not a guaranteed safe haven." In your view, what are effective ways to preserve capital?

Rohit Savant: If you're talking about preserving capital, it depends a great extent on your timeframe and your risk appetite.

"When the fiscal cliff debate intensifies as we get closer to the deadline, we may see the gold price rise in response."

If you're looking at the short term and want no fluctuations in your principal, the best way to preserve it would be either certificates of deposit or T-bills and hope that inflation doesn't rise significantly.

But if you are looking at the longer term and are willing to take some ups and downs in your capital, a better way of preserving or increasing your capital would be investments in equities, real estate and gold. You could reduce the risk a bit by purchasing dividend-paying equities.

TGR: Do you believe gold is an effective way to preserve capital?

RS: Over the long term, it is. In the short term, you are going to see fluctuations in prices.

TGR: What range do you expect gold to trade in through the first half of 2013? Continue reading "Rohit Savant Expects the Gold Bull Market to Pause in 2013" →