For many months, the price of gold has been driven by the Fed’s moves and the prospects of interest rate hikes. Therefore, the natural question after the Trump victory is how his presidency will affect the Fed’s actions and, thus, the gold...
Trump’s economic agenda consists of foreign policy, fiscal policy and regulatory policy. We have already commented a bit about Trump’s imprint on geopolitics and uncertainty in the context of the gold market. Now, let’s focus on the...
Our Market Overview would be incomplete without remarks about gold priced in the Japanese yen. Chart 1 shows nominal gold prices denominated both in the US dollar and the Japanese currency, while Chart 2 plots the indices of gold prices in...
The Bank of Japan announced in September a cocktail of new monetary policy measures, called “QQE with Yield Curve Control”. Let’s analyze these innovations in detail and discuss their potential implications for the gold market. As we have...
Some economists, including San Francisco Fed President John Williams, have recently suggested raising the FOMC’s 2-percent inflation objective or implementing monetary policy through alternative frameworks, such as price-level or nominal...
Since the NIRP has not yielded the expected results, it could have actually weakened the condition of the banking sector and its ability to expand lending. Consequently, a hot debate about the use of another weapon in the central banks’...
In previous articles, we examined gold's performance in the presidential election cycles. The only relatively reliable conclusion we were able to draw from the long-term analysis is that the post-election year is the worst for the price of...
Many economists ask why economic activity fluctuates. Among many theories of business cycles, there is the political business cycle, formulated in the 1970s. According to it, incumbents try to juice up the economy during election years to...
Recently, we analyzed briefly the consequences of Brexit vote. We stated that “the most important economic effect of the Brexit vote is so far a significant rise in uncertainty”. It applies particularly to the political future of Great...
There are many ways to gain exposure to movements in the price of gold. The most traditional and conservative method is buying bullion (bars or coins). Investors can also buy gold futures at Comex or shares in gold exchange-traded funds....