LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page >> News >> Story  Disclaimer 
Latest Headlines

Gold-Stock Upleg Healthy
By: Adam Hamilton, CPA, Zeal Research

Through The Looking Glass: Employment Report Fraud
By: Dave Kranzler, Investement Research Dynamic's Mining Stock Journal

Emerging Technologies to Drive Silver Demand
By: Frank Holmes, US Funds

Precious Metals Update Video: Metals look ready to reset to 18-dma
By: Ira Epstein

Gold, Stocks & The Pandemic: A Powerful Contracyclical Play In Action
By: Daniel R. Amerman

The Return of Precious Metals Leasing
By: Ted Butler

Precious Metals Complex : The Big Picture
By: Rambus

Precious Metals Update Video: Metals fall with the Dollar
By: Ira Epstein

Is America Headed for a Post-Apocalyptic Currency Collapse?
By: Stefan Gleason, Money Metals Exchange

Why Wall Street's V-Shaped Recovery Cannot End Well
By: Rick Ackerman, Rick's Picks


GoldSeek Web

Gold prices up 2% yesterday and just 4.6% left to eliminate the losses of 2015 and turn positive for the year

 -- Published: Thursday, 15 October 2015 | Print  | Disqus 

By Peter Cooper

The gold market is turning around right before our eyes and still hardly anybody seems to be paying much attention, while stocks markets wither on the vine and the US economic outlook weakens by the day. Gold prices were up more than two per cent on Wednesday and it will only take a couple more days of this type of performance to eliminate all the losses of 2015.

From that point the chances of a decent rally up to $1,300 and beyond are high. Any cyclical trader will see that the bottom in the gold price in early August is now confirmed and that the only way is up as everything else comes down, except perhaps for the moment bond prices.

Goldbugs’ revenge

Wall Street stock market bulls are now almost as scarce as goldbugs in early August. Sure the Fed’s decision not to raise interest rates stopped an immediate market crash. But it left a nasty aftertaste of a weakening economy that can’t stand tough medicine. Weakening economies do not keep profits on an uptrend, on the contrary slower profit growth is toxic for share prices.

Still you have to ask why investors would start to shift back into precious metals, so recently persona non grata on the street.

Basically it is down to an unwinding of Goldman Sach’s negative call on gold earlier this year. They said gold prices were on a one-way trip lower because interest rates were only going in one direction, and as gold does not pay investors any interest that made it a sell.

Well Goldman’s call turned out to be dead wrong. It becomes clearer and clearer from every economic data series, both US and global, that US interest rates are not going up, and the risk to the economy of doing so is increasing and not decreasing. In short, there was an opportunity to raise rates, perhaps, but it has gone. For good. Negative rates are more likely in the near future.

One-way bet?

Therefore, it is gold that becomes the one-way bet for traders, not shorting precious metals. These guys are not sudden converts to the case for sound money in a world awash with paper and debt. They simply see a trading call that went wrong and have switched to the other side.

Given that momentum usually moves only in one direction the question then is how high will gold go and how fast? Will this be a like a brick on the end of an elastic band or a steady uptrend lasting a couple of years? Traders will not be waiting to find out.

| Digg This Article
 -- Published: Thursday, 15 October 2015 | E-Mail  | Print  | Source:

comments powered by Disqus


Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to >> Story

E-mail Page  | Print  | Disclaimer 

© 1995 - 2019 Supports

©, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


The views contained here may not represent the views of, Gold Seek LLC, its affiliates or advertisers., Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of, Gold Seek LLC, is strictly prohibited. In no event shall, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.