Cry havoc and let slip the dogs of inflation!
Many traders immediately think of precious metals like gold (GLD, quote)when hedging inflation.
Many traders immediately think of precious metals like gold (GLD, quote)when hedging inflation.
In the past investors were limited in choices between paper assets like stocks , bonds and trust deeds, and physical assets. Physical assets were all forms of commodities (DBC, quote) , real estate, precious metals, agricultural, energies etc , along of course their labor.
Regular readers of my market analysis will know that I have been bearish on gold for some time, and despite the recent bullish trend which has seen gold move from the lows of $1170 per ounce to the high of late January at $1310 per ounce, have remained so.
For speculative traders, the last few weeks have offered wonderful trading opportunities across all markets, and provided you have no directional bias, the opportunities are there in abundance.
As we come to the end of 2014 and look forward to 2015, for those trading and investing in gold the perspectives and conclusions will no doubt be very different and entirely dependent on whether you are a longer term investor in the precious metal, or a short term speculator.
To say the last few days have been a roller coaster ride for commodities would be an understatement, with both oil and gold providing some sensational trading opportunities, but for very different reasons. For gold, it was the Swiss referendum over the weekend, and for oil, it was the OPEC meeting in Vienna.
The price action for gold throughout much of November could best be described as chaotic, with volatile days of price action subsequently followed by periods of relative inactivity, only to be replaced with extreme and unpredictable swings intraday. And perhaps the place to start with any analysis for the precious metal is on the weekly chart, for a more considered view of the price action.
An unnamed senior India ministry has indicated that India is likely to announce procedures to reduce gold imports as early as today.
Learn the secret of how to make money while those around you are fearful, in under 2 minutes. Explanation in the text below, as well as advice on how to react to recent stock market moves. How to keep your head when those around you are losing theirs. Firstly get better informed by asking 3 simple questions: What’s really going on? Why is it happening? What could happen next?
With another trading week over, and Non Farm Payroll having come and gone for another month, markets in general are now looking forward, as the minor reversal in the US dollar’s unstoppable progress appears to have simply been a temporary pause and reaction to the worse than expected employment data.