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Tuesday, 27 October 10:56 (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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Goldman Sachs is back in the game

20 years ago, Goldman Sachs used to be a Wall Street legend and a dream company to work for graduates with a financial degree. Over the last few years, the bank has been a loser with thousands of disappointed employees, managers, and investors. However, the other day Goldman Sachs made an attempt to get back in the game.

Publication date: 16 October 01:17 PM

European ETFs - Decent Alternative to American ETFs

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Publication date: 19 September 01:48 AM

Warren Buffett Keeps Loading Up On Bank of America's Stock

Berkshire Hathaway keeps loading up on Bank of America's stock. This time, during the period of July 31st - August 4th, they purchased over 13,6 million shares, which cost 337 million dollars. The average prices was 24,81 dollars per share. With that being said, Berkshire Hathaway now owns 1,03 billion shares of the stock, which is 26,15 billion dollars in dollar terms. As for the Federal Reserve, they agreed to increase the fund's share to 24,9%.

Publication date: 12 August 01:39 AM

WTI Price Drops After US Oil Inventories Report

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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

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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