Heroes of Ukraine

«Market Leader» - news and previews making you rich.

Wednesday, 12 August 12:47 (GMT -05:00)



Stock and commodities markets

“Gold bubble” or secret of successful investment from George Soros

Gold

 

As Market Leader previously reported, a 24% increase in the value of gold didn’t stop George Soros, John Paulson and Paul Touradji from buying it. According to the data provided by U.S. Securities and Exchange Commission (SEC), the biggest volumes of gold were bought by Soros Fund Management LLC, Paulson & Co. and Touradji Capital Management LP. The total volume of the precious metal owned by the 3 companies is 2088 tons, which is roughly equal to the volume produced by the USA in 10 years.
And while the Fed Reserve and other central banks around the world have already poured into the global economy over $2 trillion, in their turn investors are getting more active in buying up the stable assets. At this point 50% of the total gold reserve is in the hands of private investors. Yet the volume of gold that is in free circulation significantly exceeds the one of reserves accumulated by numerous countries, except the USA, Germany, Italy and France.
Michael Pento, chief economist for Euro Pacific Capital, says that those who get rid of gold make a big mistake. The uptrend will stop only when the real interest rates are of positive value, which in its turn will take place when the Fed Reserve stops emitting money in order to restrain the growth of the interest rates. In connection with that Goldman Sachs Group economists expect precious metals operations to bring the biggest profits next year.
Since September 2007 the Federal Reserve has been reducing the interest rates while the credit markets have become more volatile (oscillating). Gold has gained 87% of its previous value. S&P500 has lost 21% (even taking into account the previous 23% upswing), which is the lowest value since 2003.
The Federal Reserve has been keeping the interest rates close to zero since December 2008. Moreover, it is planning to pour extra $600B into the US economy until June 2011 through placing government bonds as a part of the Quantitative Easing 2 program (QE2).
In the meantime, in the 3rd quarter the USD index (USD versus other 6 major currencies) declined by 8.5%, which was the biggest fall over the last 8 years.
Experts believe that QE2 will only accelerate the uptrend of gold. The real sort-term interest rate adjusted for inflation still has a negative value, which will make commodity markets see up-trends.
It is confirmed by the gold price. On Nov 9th it reached its record-breaking level over the last 9 years, making up $1424.60 per troy ounce. Other precious metals also showed considerable growth. For example, on Nov 19th silver futures indicated a 61% increase in the value while the treasury notes gained 7.3%.
As far back as in January George Soros explained that the entire issue about gold was a big “soap bubble”. Yet, investing in soap bubbles is very profitable when they only start growing in size.
According to Howard Friend, chief economist for MigBank, the best Forex broker, during the last week gold didn’t fall below the key support at 1.3335. On the contrary, there was an upward rebound from it with perspectives of another uptrend.


 

 


It further development may result in reaching 1367. The closest resistance level is at 1395. If gold succeeds in getting over it then the next resistance level will be at 1408.
If the market chooses the other scenario there will be a fall below 1352 indicating a downward tendency. In any case, a more precise forecast may be given only after the market goes below the 1335 and 1328 support levels. In that case the next support will be at 1295.

 

 

You are free to discuss this article here:   forum for traders and investors

 

Text: Alexey Borzak
Add to blog
Got a question? – Ask it here »
 

WTI Price Drops After US Oil Inventories Report

Today, another crude oil inventories report has been released by the USA:

Publication date: 03 June 12:21 PM

Is Gold Worth Investing Amid Crisis?

Securing assets has always been number-one goal during crises. This is something that worries borth financial experts and plain folks who are far from the  peculiarities of the financial world but who are still witnessing their savings vanish amid inflation and devaluation.

Publication date: 14 April 02:09 AM

Remember the Key Rules of Investing in Stocks

Without further ado, let's consider a bunch of principles of investing in stock, which will put the odds of succeeding in this business in your favor:

Publication date: 11 March 01:14 AM

Apple Patents iPhone Without Ports And Holes, Device Expected In 2021

It seems that the release of the long-awaited iPhone without any ports or holes is getting more and more portable. Apple has always favored minimalistic designs, especially over the last 5 years. In 2015, almost all of the classic ports were deprecated in MacBooks in favor of a single one - USB-C Thunderbolt 3. In 2017, iPhone 7 got rid of the 3.5mm audio jack.

Publication date: 05 March 08:20 AM

Gold Sets New Records

The gold market is insane. The gold futures price set a new major high in New York. In particular, the dollar price of the precious metal set a new 7- year high. With that being said, maybe you should add gold to your investment portfolio along with BTC? Well,lat's ponder upon this question.

Publication date: 14 January 01:23 AM

Brent Prices Drop Down To $61/b

The concerns over the global demand for crude oil are getting back to the market again. The current trading week has been a week of discounts. Earlier today, Brent oil saw its price drop down to 61 dollars per barrel. The WTI price dropped all the way down to 56 dollars per barrel. The supply side has got an upper hand.
Publication date: 27 September 04:52 AM

Gold Prices Are Getting Stable After Monday's Rally

Last week was rich in the information about various financial markets, which could exert downward pressure on gold prices. Strange as it may seem, the situation in the ore market was relatively calm. Eventually, the week closed in the green zone. Those gains mainly had to do with Friday's gold rally. International traders and investors reacted to the information about another global economic slowdown coupled with the trade war between the United States and China as well as the current situation in the Middle East, and started loading up on gold as a safe-haven asset, which eventually pushed the prices higher. 

Publication date: 24 September 05:15 AM

Oil Prices Have Made The Biggest Rally In History

Gold, yen, and oil currencies are getting more expensive. The strike came for an unexpected direction. Saudi Arabia's oil facilities were attacked, which increased geopolitical risks in the region and simultaneously undermined the global oil supplies. That was basically the reason why crude oil prices made the biggest rally in history but then moved back a bit and are still trading over 10% higher relative to the start of the trading session. 
 
Publication date: 16 September 03:26 AM

iOS13 Outshines iPhone

For Apple fans, September has been a special month from many years. This is the time when Apple introduces the biggest innovations and the latest products destined to be best sellers for the next 12 months. This time, everything is likely going to be the same. In just a couple of days, on September 10th, we are to witness another Apple event.
 
Publication date: 05 September 03:28 AM

US-China Trade War Makes Oil Prices Drop

The previous trading week wasn't an exiting one. The oil prices grew in the first part of the week while trying to make up for the losses of the previous week. Still, the second half of the week turned out to be a bearish one. WTI oil prices dropped below 55 dollars per barrel while brent oil dropped down to 61 dollars per barrel. Yet, the bearish momentum is still there.

Publication date: 04 August 08:33 AM