Via HardAssetsAlliance.com, Apple spent about five years developing the iPhone, which has changed the smartphone market forever. Until the release, however, nobody could imagine what impact the iPhone would have on the market. And most consumers didn’t know about it at all. The same thing is happening with China and gold right now. The gold market will soon be very different than from what we see today – largely due to the current developments in China. China’s influence will impact not just gold investors but everyone who has a vested…
Read MoreMonth: April 2016
Key Events In The Coming Central Bank-Heavy Week
As DB previews, the April FOMC gathering headlines a crowded economic events calendar this week. The post-meeting statement, to be released Wednesday afternoon, should continue to strike a cautious tone. There will be no press conference and updated economic and financial forecasts will not be released. Few expect the FOMC to add the “balance of risks” sentence back into its communiqué at this point. Doing so would be quite bearish for risk assets as it would definitely open the door for a June rate hike. Over the past week, the…
Read MoreEUR/USD Fundamental Analysis – 24th April 2016
Fundamental Analysis tries to explain the movements of the market through economic events. Therefore, let us look at certain reasons that are significant for the EUR/USD pair. ECB keeps monetary policy intact; faces sharp criticism from Germany “We have a mandate to pursue price stability for the whole of the eurozone not only for Germany” – Mario Draghi, ECB President The European Central Bank held its interest rates at record lows and kept the size of its bond-purchasing programme unchanged, allowing some time for fresh stimulus measures announced last month to affect…
Read More“A Scramble For Gold Has Begun”
Authored by James Rickards, originally posted at The Telegraph, For a century, elites have worked to eliminate monetary gold, both physically and ideologically. This began in 1914, with the UK’s entry into the First World War. The Bank of England wanted to suspend convertibility of bank notes into gold. Keynes counselled wisely that the bank should not do so. Gold was finite, but credit elastic. By staying on gold, the UK could maintain its credit, and finance the war effort. This transpired. The House of Morgan organised massive credits for…
Read MoreChina Embraces Gold In Advance Of Post-Dollar Era
To challenge the US dollar hegemony and increase its power in the global realm of finance, China has a potent gold strategy. Whilst the State Council is preparing itself for the inevitable decay of the current international monetary system, it has firmly embraced gold in its economy. With a staggering pace the government has developed the Chinese domestic gold market, stimulated private gold accumulation and increased its official gold reserves in order to ensure financial stability and support the internationalisation of the renminbi. “The outbreak of the crisis and its…
Read MoreFundamental-Analysis: US remains on solid course, Fed on track for further rate hikes
“So yes, there is accommodation in the monetary policy that we have. But we think the gradual path of rate increases will be appropriate” – Janet Yellen, Fed Chair Fed Chair Janet Yellen said that the US central bank did not make a mistake in hiking interest rates in December, a move that was followed by massive turbulence in financial markets and further weakening of the global economy. Yellen said that as the US economy remains on a solid ground with some signs of inflation. Moreover, seven years after the severe…
Read MoreCurrency Analysis – New Zealand Dollar versus US Dollar (Video)
By EconMatters
We look at the “Kiwi”/USD Currency Cross in this video. We delve into the history of the New Zealand currency, with a look at the technical support and resistance levels throughout the last 20 years.
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Gold & Silver Surge Amid Crude & Copper Carnage
As the growth mirage fades (and short-squeeze ammo runs out), so crude and copper carnage is reappearing. Amid its biggest plunge since early Jan, Copper is now down 10 of the last 12 days and crude is plunging back towards it 50-day moving average. Amid this bloodbathery, precious metals are bid as Saxo Bank sees Gold “heading back to its highs and beyond.” Copper & Crude carnage continues as PMs are bid… The biggest plunge in copper since September 2015… Which as Saxo Bank’s Ole Hanson notes, is…
Read MoreFundamental Analysis: Canada’s trade deficit unexpectedly triples in February
“This is pretty disappointing, and it’s a rude awakening for the Canadian economy” – Desjardins Group Canada’s trade deficit swelled in February more than expected amid the sharpest decline in exports in almost seven years. Canada’s trade deficit grew to $1.9 billion in February, more than triple the shortfall of $628 million the month before, Statistics Canada reported. Exports plunged 5.4%, the biggest month-on-month decrease since May 2009, on a combination of lower prices and a 2.2% decline in volumes. Imports also dropped 2.6%, due to lower prices as well as…
Read MoreEUR/USD Weekly Fundamental Analysis – April 4- 8, 2016 -Forecast
The EUR/USD ended the week with a 2% gain at 1.1389 on better than expected data, but the climb in the euro is weighing heavily on exporters and the ECB plans. The US dollar fell most of the month on dovish FOMC outlooks. The euro zone economy continues to face significant headwinds from the influx of refugees, heightened security challenges amid terrorist attacks, uncertainty surrounding the outcome of the UK’s EU referendum, rising political polarization, and new bank regulations. However, after economic indicators showed signs of slowing growth dynamics in…
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