Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

GoldSeek Radio: Harry S. Dent Jr. and Bob Hoye, and Chris Waltzek
By: radio.GoldSeek.com

Your Comprehensive Crash Survival Guide
By: Clive Maund

European Threats
By: John Mauldin

Yet Another Trillion-Dollar Unfunded Liability: WHY California Is Burning
By: John Rubino

Gold And Silver Prices Rise As The Markets And Oil Decline
By: Steve St. Angelo

BIS gold swaps fall in November but bank continues secret trading
By: Robert Lambourne

Listen to what gold is telling you
By: Gary Savage

Gold Seeker Weekly Wrap-Up: Gold and Silver Gain Over 2% and 3% on the Week While Stocks Drop Nearly 5%
By: Chris Mullen, Gold Seeker Report

Gold Stocks Acting as They Should During Market Stress
By: Gary Tanashian

Craig Hemke Warns of Fraud in Fractional Reserve Precious Metals Markets…
By: Mike Gleason

 
Search

GoldSeek Web

 
SWOT Analysis: Gold Imports to India Rose 37 Percent


 -- Published: Monday, 8 January 2018 | Print  | Disqus 

By Frank Holmes

Strengths

·         The best performing metal this week was platinum, up 4.3 percent as speculators cut their net bearish platinum positions. After being bullish for the previous three weeks, gold traders and analysts are neutral this week, according to a Bloomberg survey. However, the number of new investors for BullionVault hit the highest level since November 2016, according to the online gold vaulting firm.

·         Even as equities were record-high in 2017, investors still turned to gold as a hedge against uncertainty, pushing the Comex futures volume to an all-time high, according to Bloomberg.

·         The largest gold ETF, SPDR Gold shares, kicked off 2018 strong by continuing its record streak of gains. The gold price continues to increase due to a weaker U.S. dollar.

http://www.goldseek.com/news/2018/1-8fh.png

Weaknesses

·         The worst performing metal this week was gold, still up 1.3 percent. Although gold has started 2018 strong, some think warning signs have flashed the gain may be overdone. Bullion’s 14-day relative strength index hit 74, which is above the level of 70 that suggest a pullback is imminent, according to Bloomberg. Gold fell after the Federal Reserve meeting minutes showed most officials support higher interest rates.

·         Gold futures were set for the longest rally since 1975 after a report showed a slower-than expected hiring rate. The U.S. dollar dropped at the initial reaction of the news, and then bargain hunters stepped in raising the price of the dollar and pushing the gold price down.

·         Home resales dropped in Manhattan, New York down 11 percent to 2,127 homes. More than 88 percent of homes sold in the fourth quarter of 2017 were below the asking price with the median resale price of $916,425. Many see this as a reaction to impending tax reform taking effect.

Opportunities

·         India’s December 2017 gold imports rose 37 percent year-over-year from 56.9 tons to 77.7 tons. This is very positive news given that India has the second highest gold demand behind only China, and might signal the return of a gold bull market.  India’s gold market has struggled the last year with demonetization and tax reform but Fitch recently ranked India number one of the top 10 emerging markets for GDP growth with the largest working-age population in the next five years.  A stronger Indian economy has historically been good for gold prices.

·         Gold mining companies are on the rise due to record high commodity prices and years of self-help measures that have strengthened balance sheets, according to Bloomberg. “Miners look to be in the healthiest position that we have seen for years,” says Paul Gait, analyst at Sanford C. Bernstein, but noted that the big M&A deals of the past were value destructive. “There is nothing wrong with being a cash cow,” Gait wrote in the report.

·         The yellow metal was off to a strong start this month and might rally for the remainder of the month, if not the entire year. David Lennox, resource analyst at Australian brokerage Fat Prophets said, “Higher inflation coupled with weakness in the dollar will push the price upwards.” Other evidence to support a bullish view is that gold remained strong in 2017 despite the U.S. stock market surging to record highs and interest rates rising three times.

Threats

·         According to Morgan Stanley, it might be too late in the market cycle to bet on high-yield bonds. The money management firm cut its junk bond allocation, citing excesses from the tax cuts might lead to a recession after growth in the short-term.

·         The U.S. trade deficit hit its highest level in almost six years with an increase in imports exceeding a gain in shipments. This could keep the gross domestic product from advancing at least 3 percent, according to Bloomberg’s Andrew Mayeda. Automakers saw their first annual U.S. sales decline since 2009 and projections for 2018 are down due to expectations of interest rate hikes.

·         In a Bloomberg interview this week, Former U.S. Treasury Secretary Jacob J. Lew said the recently passed tax reform is a ticking time bomb for debt that could leave the U.S. broke. Lew said the administration is “spending trillions of dollars you don’t have at a time that the economy is doing well.” Lew believes the tax cuts will lead to certain proposals cut or reduced such as medical insurance for the poor and Social Security and Medicare.

http://usfunds.com/

 


| Digg This Article
 -- Published: Monday, 8 January 2018 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2019



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com 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 GoldSeek.com. 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


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, 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 GoldSeek.com, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, 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.