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Friday, 16 November 02:47 (GMT -05:00)



Stock and commodities markets

Gold Keeps Losing Its Safe-Haven Asset Status


The amount of political and economic crises keeps on growing in the world but gold is still going down in value. International experts have been trying to figure out the reasons why contemporary investors are investing in other assets instead of gold as it used to be ages. It's interesting to note that they are mostly investing in dollar assets. 
 
Previously, investors used to load up on gold during various crises. Gold helped them to survive even the biggest crises out there. With that being said, gold has always been treated as safe-have asset, at least up until recently. The current situation varies significantly from all the precedents. The experts and observers say that today's world presents a lot of risks for the global financial system, including the trade ware between the United States and China, Brexit, the devaluation of the Turkish national currency, the tensions around Iran's nuclear program, internal political and debt issues in Italy, tougher Western sanctions against Russia and Iran, and of course, the likelihood of Trump's impeachment. Strangely enough, despite all of that, gold has been going down in value since April 2018. 
 
According to NordFX's analytic center, April's gold prices reached the 12-month high at $1365/oz. After peaking at this price, gold started its downtrend. By mid August, the price had already dropped all the way down to $1170/oz, which is still the lowest price since January 2017. All in all, gold depreciated by 15% over the first 4 months of the downtrend.
 
Having analyzed the futures market, international experts say that never in the history of the international gold market have professionals gone bearish for gold. It seems that gold, which has always been a anti-crisis asset, has now been found knee-deep in crisis itself.
 

U.S. Dollar Attacks

 

International experts say there is a whole lot of possible reasons for the current situation in the gold market. Some of them say the key reasons boils down to the fact that the Indian market, which is one of the most crucial markets for gold, has seen a major decrease in demand. Others say that more and more investors start seeing tech stocks like Google and Apple as next-gen safe-haven assets. Yet another group assumes that the market has been afraid of a major gold sellout by the Central Bank of Turkey, which is why international investors have been reducing their exposure to gold. 
 
However, most experts share the same opinion that the strengthening of the U.S. Dollar is yet another major reason why gold has been weak over the last couple of months. The thing is that more often than not, the financial assets are usually traded for dollars. Since, the AMerican currency is negatively correlated with those assets for obvious reasons, any strengthening of the U.S. Dollar means weakness for those assets, which is something we can see now in the market of gold. The thing is, when the U.S. Dollar gets stronger, this makes gold purchases more expensive, and that's why international buyers have to suspend their gold purchases for a while. By the way, the same holds true for another popular commodity assets, which is crude oil.
 
While the Fed keeps on toughening their monetary policies, T-bond yields are rising, thus making T-bond investments more attractive. Some experts belive that the American currency is probably going to continue strengthening, which means gold is destined to see the flight of capital for more profitable assets like U.S. T-bonds. 
 

 

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Golden Medium: Russia Isn't Concerned About Decreasing Oil Prices

Market Leader reports that the global market of rude oil has been seen a prolonged downtrend after a pretty strong rally seen over a couple of months in a row. Not so long ago, a barrel of Brent oil used to cost 86 dollars. At this point, it costs just 70 dollars. Still, the Russian authorities don't seem to be concerned about this price drop at all. Experts say the see no reason to worry about the situation.
Publication date: 12 November 11:57 AM

Apple's Market Cap Drops Below 1 Trillion Dollars

Apple's market capitalization has dropped below 1 trillion dollars. Market Leader reports that this summer, Apple became the world's first company to reach such a stunning result - market cap over 1 trillion dollars. Apparently, all of that became possible due to higher Apple stock prices.
Publication date: 07 November 02:18 AM

USA Leaves China Without Crude Oil, Russia Is Ready To Compensate

The trade war between the United States and China is still underway. Earlier this month, America made another attempt to undermine the Chinese economy. The thing is, that up until recently, America used to be one of the biggest exporters of crude oil to China. In summer, the U.S. export of crude oil to China used to be equal to 10,5 million barrels a month. At this point, America has almost suspended the export of crude oil to China. Last month American oil companies shipped as little as 600K barrels, with no oil shipping planned for this month.

Publication date: 17 October 10:29 AM

Evgeniy Filichkin: FortFC Launches pre-ICO

While skeptics armed with political axioms, and complicated math formulas, are trying to persuade the world that sooner or later, the cryptomarket industry is doomed to exhaust its potential at some point in the future, the cryptomarket itself is becoming a part of the global economy.

Publication date: 03 October 09:10 AM

Trump is helpless: oil prices keep going up

Oil prices keep going up. Brent oil has just exceeded $83/b. Obviously, Donal Trump's attempts to urge the OPEC to increase their oil production have filed so far. For those of you who don't know, not so long ago Donald Trump threatened the OPEC in general and Middle-Eastern oil producers in particular with consequences if they refuse to start increasing their oil production to dump international oil prices as soon as possible. However, those threats seem to have had no impact on the OPEC and the prices are still going up. 

Publication date: 01 October 10:15 AM

Trump Will Take Revenge on Middle East because of Crude Oils

Donald Trump threated some Middle Eastern oil producers to take revenge on them because of crude oil prices. This is not the first time the American president is criticizing the Middle East in Twitter for being reluctant to contribute to lower oil prices. 

Publication date: 24 September 10:02 AM

China declares crude oil war on USA

Beijing is now considering the opportunity to cut down on the export of crude oil from the United States in response to Washington's decision to raise the import duties on Chinese products. The energy war between the USa and China may also affect Russia.

Publication date: 11 September 11:55 AM

China's dependence on crude oil increases fast

Over the last few years, China has been getting more and more dependent on the import of crude oil and some other energy carriers. Most of those oil imports are of Russian origin. the thing is that CHina's domestic oil and natural gas production has been contracting over the last few years while the country's production capacities have increased and are now in high demand of more energy.

Publication date: 11 September 10:40 AM

Trump Is Close to His Goal - Oil at $50/b

According to Finanz, President Trump is close to making oil prices drop down to $50/b like never before. Last week was bearish for the global market of crude oil. This happened mainly due to the agreement between the U.S. president and the King of Saudi Arabia.

Publication date: 23 August 11:36 AM

Investment Banks Raise Their Oil Forecasts

The world's biggest investment banks have raised their oil forecasts again, for the 10th month in a row, The Wall Street Journal reports. 

Publication date: 02 August 12:00 PM