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Gold Is at 7 Week High on Weak Dollar Index

11 Jun
Gold Eagles- Bullion

Gold Is at 7 Week High on Weak Dollar Index

Gold Market Discussion

Gold Is at 7 Week High on Weak Dollar Index, Nearly Reaches $1300

Gold Bull Market ComingThis week, gold is at 7 week high on weak dollar index (among other driving factors). Gold prices started out the weak with a rally climbing over $1,290, however it pulled back some on Thursday and Friday. The dollar index was up Friday gaining strength against a plunging British pound following U.K. elections that resulted in a hung parliament.

The dollar index weakness appears to be finally establishing. It was at its lowest level since November this week, as were bond yields. The post-election dollar strength was part of the reason that gold prices were depressed kicking off the new year. As discussed last week, the bond yield curve is also something to pay attention to.

What this means for investors: The dollar index generally moves opposite to gold, so it’s no surprise that gold had such a strong week. Silver was up this week as well. Some profit taking in metals due to the rally likely was responsible for some of the pull back at the end of the week. Take a look at the dollar index chart above to see its recent trajectory.

JIM ROGERS: “The worst crash in your life” is coming


Watch this eye-opening interview with Jim Rogers on Business Insider as he predicts the cause of the upcoming “worst crash in your life”.  Click here to watch on Business Insider’s website.

Charts Indicate Gold Could Still Climb

Some analysts’ charts are showing some very bullish signs on gold’s recent move. Check out the discussion of the four charts that are showing gold moving higher.

What this means for investors: Watch for dips to get in before the bullish move. The fundamentals are present to send gold higher.

Uncertainty Factors in the Markets This Week

Mario Draghi, President of the European Central Bank

Beyond charts and data signaling gold’s upward climb, there is an increasing amount of uncertainty in the world. For example, the U.K.’s snap election this week defied most predictions and has left the country with a hung parliament and Brexit negotiations in question. In the Middle East, tensions over the severing of several Arab countries with Qatar also prompted increased fear in the markets. In Europe, policy dovishness from European Central Bank chair Mario Draghi led to some euro weakening. Of course the big story this week was former FBI director James Comey’s hearing. While it was anticipated by uncertainty, the lack of any major bombshells ultimately led the stock market to recover some of its weekly loss.

What this means for investors: If you are worried about the future, gold and silver might be the right buy for you now. Uncertainty always triggers price spikes. Investors are becoming increasingly worried in this climate about black swan events as well, and increasing gold holdings as a precaution.


Jobs, Fed Data and Gold

Two weeks ago the U.S. Labor Department released the May jobs report and the numbers were disappointing. The labor force participation rate was down more than expected, and fewer jobs added than anticipated. Gold got a boost from the data, however. This data will certainly weigh on the Fed’s decision going forward on interest rates, and on Wednesday, they announce their decision on the next rate hike.

What this means for investors: The Fed announcement is one of the major things investors will be looking at next week. Analysts are almost certain in their predictions that there will be a rate hike, though weak economic data could make them more cautions. After previous announcements of rate hikes, gold has gone up.

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 Here are some articles from the web discussing the topics in this week’s post:

Gold Is at 7 Week High on Weak Dollar Index, Nearly Reaches $1300

Read Here

Watch Jim Rogers Interview

Watch Here

Charts Indicate Gold Could Still Climb

Read/Watch Here

Uncertainty Factors in the Markets This Week

Read Here

Jobs and Fed Data and Gold

Read Here

 


As always, I encourage you to speak with your broker at RME for more market updates. Expert brokers are available Monday-Friday from 9 AM- 5 PM or by special appointment after hours. Call today at  602-955-6500 or toll-free at 877-354-4040.

“I’ll be keeping a sharp eye on the market and I encourage you to do the same!”

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