Gold

This would be a warning against investing in bonds because the interest rates were simply too low. The risk was too high that the price of the bond would fall […]

The bearish momentum which had guided the yellow metal during the past two days allayed on Wednesday, thus allowing XAU/USD to maintain a slight upward tendency. The pair nevertheless remained […]

The gold price is manipulated and kept low by the BIS, which works for the central banks in order to protect fiat currencies so that governments can employ them to […]

The price of the US dollar in Forex markets will be influenced by the success and subsequent decline of Bitcoin while at the same time the Chinese support the yuan as an international reserve currency and continue putting more renminbi in circulation.

Gold has taken a bit of a dive over the last few weeks and more generally since September. In our view, it is suffering from the bounce we’ve seen, to various extents, since early September, on reflationary assets (US long term rates, the Dollar, Oil). We hereby review these dynamics with a 3 months and 12 months view.

The uncertainties of the monetary system mean that bitcoins and cryptocurrencies will be used increasingly in the future, especially once the regulatory bodies have found a way to eradicate anonymity, charging the exchanges with anti-money laundering responsibility.

Both GOLD and BITCOINS, and the other CRYPTOCURRENCIES, are instruments completely free from the control of the central banks, and are therefore a natural diversification from the impacts that can be generated by the unconventional manoeuvres of the central banks.

The yellow metal is continuing to trade against the buck at the intersection of large ascending channel and junior rising wedge formations.

Although the larger pattern managed to constrain the bullish sentiment for now, but the rising 55-, 100- and 200-hour SMAs as well as ongoing concerns over implementation of the US President Donald Trump’s tax plan suggest that such upward movement is going to continue and might actually reach the upper trend-line of another dominant descending channel near the 1,293.00 mark.