We argued many times that the yellow metal behaves as a currency rather than as a commodity. Hence, macroeconomic factors and currency exchange rates affect the price of gold. In previous editions of the Market Overview, we analyzed the...
One of the most important economic debate today is whether the economy will experience reflation or deflation (or low inflation) in the upcoming months. Has the recent reflation been only a temporary jump? Or has it marked the beginning of...
In the previous edition of the Market Overview we wrote that “geopolitical risks clearly won with a hawkish Fed in a tug of war in the gold market” at the turn of March and April, as the yellow metal gained about 7 percent from mid-March...
The latest FOMC minutes suggest that the Fed may start decreasing its balance sheet later this year. There are many unknowns about this process, so we invite you to read our today’s article about the unwinding of the Fed’s balance sheet...
In the previous editions of the Market Overview, we wrote about the reflation trade. We analyzed the important signals of the uptick in economic activity and inflation all over the world, arguing that the upcoming reflation does not look...
The first round of the French Presidential Election is behind us. Now, the main developments in Europe which may affect the gold market – except the turmoil in the still fragile banking sector – are a run-off in France and Brexit. Let’s...
This time, the U.S. central bank did not make us wait too long for the next hike. Just three months after the hike in December, the Fed moved interest rates up again. Although the pace of the current tightening cycle is extremely gradual,...
After a long wait, our President has finally presented his budget blueprint “to make America great again”. Let’s analyze its possible impact on the gold market. First, we need to praise a 1.2 percent cut in discretionary spending, on...
Gold performed really well in the first quarter of 2017. As the chart below shows, the rally started at the end of December 2016. The yellow metal bottomed at $1,125.7 on December 20, just a few days after the FOMC meeting and the second...
In January, the Dow Jones Industrial Average broke above the symbolic 20,000 for the first time ever. This development raised again concerns about the condition of the U.S. stock market – further gains could be a headwind for the gold...