Gold is holding up nicely in view of the strong dollar.
If the Fed were to surprise everyone and not cut 1/4 point tomorrow the dollar would likely rally.
I'd be inclined by a break in the gold. (I haven't the heart for silver)
https://www.cnn.com/2019/07/30/investing/fed-rate-cut-markets-now/index.html
New York (CNN Business)The economy is strong. Unemployment is historically low. Consumer confidence is high. So why, exactly, is the Federal Reserve expected to cut rates Wednesday?
One argument: By cutting rates, the Fed could grow the supply of money, which has been growing too slowly for the past few years. That, more than any tool at the Fed's disposal, will help keep the economy growing.
https://www.cnbc.com/2019/07/30/gold-is-set-to-surge-no-matter-what-the-fed-does-traders-say.html
"Hedge funds have added about 60,000 contracts over the last five weeks in gold, so they’re getting long at a terrific pace right now in gold,” he said. “Say the Fed doesn’t do anything tomorrow, as I expect, and you have a big sell-off in equities, which I expect — then I think people ... are going to look at gold and say, ‘Hey, maybe we need to own this for protection.’”
Gold price charts below:
Previous gold thread:
https://www.marketforum.com/forum/topic/33212/
From what I understand the banks are trying to keep price of gold down, [always have in the past and they have the advantage in being able to conjure up as many new paper contracts of gold as they wish and take the other side [which means always sell]
But some times the investors decide they want gold and the banks sort of throw in the towel and wait for another day to force the price of gold down
With many bonds yielding zero or less gold might be a more attractive investment
Although inflation is low, some might consider the deficit as a negative even though there is ample room to not worry
One other thing
Although the stock market has been going up, only a few stocks are strong enough to really carry the market. The rest are merely piling on as they don't want to be left behind but this crowd can move money very quickly and they do, [out of Co's with poor earnings] Many stks have reported poor earnings
Some times you just wonder where to park your mutual fund money re: if you are the mutual fund managers
Looks like the bigger investors are taking a cautious stab at gold although the numbers of gold contracts bought is impressive, once the top of the chart was broken and held [1400] this seemed to break the dam of resistance to owning gold contracts long
The gold bugs still claim gold is cheap at this price
And don't forget china Russia and others are buying huge amounts of physical gold every yr, more so than in yrs past
One wonders why all of a sudden they are buying gold
I suspect they want to join forces and create a new currency backed by gold
Can they do it, nobody knows but they are taking a lot of gold off the market and not trading but storing it
Shame on me for not pulling the trigger on this morning's break in gold (with the strong dollar). Baboom!!
Shame on me for saying banks have been selling
I was wrong
Somebody a lot smarter than me informed us the world central banks have been buying gold
What I don't know is who is selling gold
I am lead to believe this is physical gold
I know Russia and china have bought large amounts of physical gold, more than produced by mining operations
Who is selling
I dunno
I often wonder where these folks get their info
I assume they look at official reports for info
Maybe I assume too much