Gold sells off following comments from Fed Chairman Powell

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From Neils Christensen: (Kitco News) - Gold prices are well off their highs, dipping into negative territory after Federal Reserve Chairman Jerome Powell failed to shed any new light on the pace of interest rate cuts later in the year.
NYSE:GLD June 25, 2019 6:14pm

Gold is finally experiencing the breakout that bulls have been waiting for

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From Maggie Fitzgerald:
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  • Investors are piling into gold, sending the precious metal to a six-year high this week, and analysts think the commodity has established a "base" to go even higher.
  • The precious metal is up more than 8% this month, on pace for its best monthly performance since 2016.
  • Credit Suisse and Morgan Stanley are among the Wall Street firms that see a big second half of the year for gold.
Investors are piling into gold, sending the precious metal to a six-year high on Tuesday, and analysts think the commodity has established a "base" to go even higher. Gold futures hit a high of $1,442.9 on Tuesday, its highest level since May 2013 when it reached $1,444.9. The precious metal is up 9.6% this month, on pace for its best monthly performance since February 2016 when gold gained 10.57%. "Bigger picture though, given the magnitude of the base, which has taken six years to form, we suspect we could even see a retest of the $1,921 record high," David Sneddon, global head of technical analysis at Credit Suisse, said in a note to clients Monday. Sneddon said gold has established a multiyear base that could provide the platform for a "significant and long-lasting rally" for the precious metal. Gold is breaking out after Federal Reserve Chairman Jerome Powell said last week it would "act as appropriate" to keep the current economic expansion going. Powell's dovish comments increased the odds of the Fed cutting rates in July. The Fed's easier policy has also weakened the dollar. Again a basket of currencies, the dollar hit its lowest level since March on Monday. "We have finally seen more conclusive signs of the USD starting to materially weaken," said Sneddon. "With the DXY removing pivotal support from its 200-day average to complete an important bearish 'wedge' reversal, which should provide a fresh and significant catalyst for Gold to extend its gains." Gold prices also reacted positively after President Donald Trump signed new sanctions on Iran on Monday, days  after Iran shot down a U.S. drone, increasing geopolitical uncertainty. Gold is up 10.6% for the quarter and is on track for its biggest quarterly gain since the first-quarter of 2016, when it rose 16.54%. Morgan Stanley's commodity strategist Susan Bates said gold is the firm's No. 1 commodity pick. "Morgan Stanley's forecasts of falling real rates and a bearish US dollar outlook, against an uncertain macroeconomic outlook, should lend significant upside to gold's price through 2H19 and into 1H20," Bates said in a note Monday. Gold futures are currently trading up 0.7% at $1428.6 and spot gold is trading up 0.44% at $1425.4. The metal is seen as a safe haven and store of value during times of a weakening dollar, slowing economic activity and increased geopolitical tensions. --CNBC's Michael Bloom contributed to this report.

The SPDR Gold Shares (GLD) was trading at $134.31 per share on Tuesday afternoon, up $0.37 (+0.28%). Year-to-date, GLD has gained 8.62%, versus a 9.82% rise in the benchmark S&P 500 index during the same period. GLD currently has an ETF Daily News SMART Grade of B (Buy), and is ranked #1 of 34 ETFs in the Precious Metals ETFs category.
This article is brought to you courtesy of CNBC.
NYSE:GLD

Potential for dollar weakness could strengthen gold prices

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From Patti Domm : The strong dollar story could be over for now, and that's putting a shine on gold and other 'anti-dollar' trades.
NYSE:GLD June 24, 2019 9:16pm

Gold continues its winning streak, soars to highest level in 6 years

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From Fred Imbert : Gold surged to its highest level in nearly six years on Monday as the prospects of lower Federal Reserve rates and lingering geopolitical tensions between the U.S. and Iran made the precious metal more attractive to traders.
NYSE:GLD

Gold prices soar, break $1,400

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From Eustance Huang:
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NYSE:GLD June 21, 2019 9:06am

Gold soars to a multi-year high following increased chance of a Fed rate cut

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From Eustance Huang and Maggie Fitzgerald:
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NYSE:GLD June 20, 2019 10:43am

Why is gold this billionaire investor’s favorite investment

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From Frank Holmes: It was another strong week for gold, which managed to eke out its fourth straight week of positive gains. The price of the yellow metal broke above $1,350 an ounce on Friday, while gold miners, as measured by the NYSE Arca Gold Miners Index, tested their 52-week high.
NYSE:GLD June 19, 2019 6:55pm

Gold prices edge lower as investors remain hopeful for a trade resolution and a Fed rate cut

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From Reuters: Gold prices fell on Wednesday as fresh optimism that the U.S.-China trade dispute could soon end lifted equity markets, pressuring bullion ahead of a U.S. Federal Reserve policy decision later in the day.
NYSE:GLD

Gold prices rise as market expectations of a Fed rate cut loom

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From Eileen Soreng:
NYSE:GLD June 18, 2019 10:54am

Why this market technician believes gold could be on the verge of a break out

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From Lizzy Gurdus: Talk about shine.
NYSE:GLD June 17, 2019 11:13am

Billionaire Paul Tudor Jones says investors should bet on rising gold if Fed cuts rates

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From Jeff Cox:
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NYSE:GLD June 12, 2019 2:46pm

Gold surges as trade uncertainty moves investors towards safe haven investments

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From Reuters: Gold prices gained momentum on Wednesday as the dollar dipped on speculation the U.S. central bank would cut interest rates this year amid concerns about waning global economic growth.
NYSE:GLD

Amid US-China trade turmoil, is gold a Buy?

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From Frank Holmes: Americans' trust in institutions, from the federal government to banks to the news media, has been deteriorating for decades. Sixty years ago, three quarters of Americans expressed faith in the government to do the right thing "most of the time" or "just about always." Today, only one in five people, a near-record low, believes our leaders make decisions in the country's best interest.
NYSE:GLD June 10, 2019 4:19pm

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