The Daily Market Report: Gold Retreats Modestly From 2-Week Highs

IMG Auteur
 
Published : May 18th, 2017
298 words - Reading time : 0 - 1 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...


USAGOLD/Peter Grant/05-18-18

Gold has turned modestly defensive intraday following a round of positive U.S. economic data that buoyed stocks. However, the shadow of U.S. political uncertainty continues to hold sway on markets.

The yellow metal remains above the 200-day moving average and more than 61.8% of the entire decline from 1295.03 to 1213.60 has been retraced. This presents a generally favorable technical picture, which bodes well for the underlying uptrend that emerged in the wake of last December’s Fed rate hike.

With new accusations against the Trump administration surfacing on a daily basis, the President’s economic agenda may be severely hamstrung. They will be spending an inordinate amount of time and energy defending themselves, rather than advancing key legislation.

The dollar has already retraced all of its post-election gains. It is not unreasonable to think stocks may suffer the same fate. That would equate with about another 13% decline in the DJIA from the present level.

As doubts about fiscal stimulus and tax reform grow, Fed rate hike expectations have steadily eroded. The CME’s FedWatch tool now puts the probability of a 25 bps hike in June at 64.6%.

Even as growth risks mount, the Fed announced yesterday that household debt grew to a record high of $12.73 trillion in Q1. The previous high was established in Q3-08, just as Lehman Brothers collapsed and the financial crisis really gained momentum.

At its core, the financial crisis was a debt crisis. Policymakers the world-over — and seemingly U.S. households as well — opted to paper over the crisis with more debt. When the next crisis erupts, I’m not so sure the policymakers will be able to pull us back from the brink because the debt loads are so significantly higher than they were in 2007-2008.

Be prepared. Buy gold.

Read the rest of the article at USA Gold
Data and Statistics for these countries : Georgia | All
Gold and Silver Prices for these countries : Georgia | All
<< Previous article
Rate : Average note :0 (0 vote)
>> Next article
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
Pushback
02:51Gypsy
James, you're getting more difficult to read. As a Deplorable, I realize my under-education leaves me at a disadvantage when faced against the Mer...
Pushback
18 Sepdennyc2
If a university professor has been on the job for more than five years without venturing out into the world there's usually nothing to learn here. ...
Rude Awakening for the US in January? No, Just More Alarmist BS Fro...
18 SepDRGEORGE
The world & the US $ have been on the brink for 10 years (or more). In 2008 it nearly happened but giving the 1% a stack of money saved the day. It...
'No evidence' of gold market manipulation, CPM Group's Christian in...
15 Sepneville
Despite being a so-called GOLD website ,I have read more anti GOLD articles on kitco than on any other site. Yes chris you are absolutely corre...
Rude Awakening for the US in January? No, Just More Alarmist BS Fro...
13 Sepgoldsacs1
USA born out of genocide, built by slavery, mantained by continuos wars, profited on fake money, which ultimately will be the cause of its demise. ...
Rude Awakening for the US in January? No, Just More Alarmist BS Fro...
15 SepSilverthumb2
I used to enjoy listening to Rickards. He sold out when he signed on with Agora Financial. Now he's just another ranting alarmist trying to get ri...
What's Killing the Jobs Market?
13 SepJ.0
It is hard to know where to begin to respond to your comment Recusant. You do not seem to understand how markets work. So, I'll throw out some po...
Rude Awakening for the US in January? No, Just More Alarmist BS Fro...
12 SepThe Recusant3
Oh, pish, Mish! Rickards has been spouting alarms for years. It's China and Russia that we must worry about sinking the dollar as the international...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS