Gold Up, in Anticipation of US Fed Standing ‘Pat’
$GLD, $GDX, $JDST
Gold is valued as unequalled material for jewelry, storing wealth and growing industrial uses.
Gold prices rose Monday, as the USD slipped Vs a basket of currencies, as the market awaits clues on timing of an increase in US interest rates.
Spot Gold was up 0.4%, or 7.30 at 1,317.30 by 3:00p EDT (1900 GMT).
US Gold (COMEX) futures are currently trading at 1,319.40, of +1.60 at 3:03a EDT on 20 September.
Expectations that the US Fed will raise interest rates this week have receded, putting pressure on the Buck, which
when it falls makes Gold cheaper for holders of other currencies.
The CME fed funds market is pricing in a 15% chance that the Fed will hike US interest rates Wednesday.
Some analysts now see a rise in December after the US Presidential election.
Goldman Sachs puts the chances of a rate hike in December at 40%, I see is at less than 40% and that the Fed will not raise rates until well into Y 2017.
Technically, 1st resistance comes in at 1,330, near the 21-Day MA.
Investors are also expecting the results of the BOJ meeting, scheduled for this week.
Gold tapped a 2-year high in July at 1,380 and YTD the precious Yellow metal is up 25% or nearly 300 oz, 1 of its best annual performances since Y 1980.
When it comes to commodities, there are basics that will always dominate the direction of prices. The balance between Supply and Demand is the most fundamental of them, and it is essential to understand that relationship, especially for long-term buyers of Gold and other precious metals.
Understanding the impact of Supply and Demand realities on the market price of Gold, some analysts are taking the long view and predicting Gold prices as high as 12,000 oz. in such long term forecasts they consider the trends of Gold demand and the finite supply of the precious Yellow metal available in total and it growing use as an industrial metal, along with it historic, solid money attachment.
So then it is not outside the realm of imagination for the price of Gold to hit never-before-seen highs in decades to come. Whether or not these forecasts prove true, the natural and immutable impact of Supply Vs Demand continues to exert very Bullish long-term pressure on the market for Gold and of course the firms that mine it efficiently, some of which are undervalued in the extreme.
|HeffX-LTN Analysis for GLD:||Overall||Short||Intermediate||Long|
|Neutral (-0.09)||Neutral (-0.23)||Bearish (-0.25)||Neutral (0.21)|
|HeffX-LTN Analysis for GDX:||Overall||Short||Intermediate||Long|
|Neutral (-0.24)||Bearish (-0.34)||Neutral (-0.06)||Bearish (-0.31)|
|HeffX-LTN Analysis for JDST:||Overall||Short||Intermediate||Long|
|Neutral (-0.11)||Neutral (-0.06)||Neutral (-0.21)||Neutral (-0.06)|