Gold prices began to drop once again yesterday as the pressure of the dollar strength continued to weigh on gold and silver. We have been saying that gold prices will continue to be weak in the short term and under pressure as we approach the Fed meeting in which a rate hike is expected to be announced. Not only that, we are also looking at possible further hikes in 2017 and with continuing good data from the US, gold prices are bound to be subdued. We also hear reports that China has imposed further curbs on gold imports in order to control capital outflows and with reports saying that India may also be considering a similar action in the near future, this is bound to affect the demand for gold in the short and medium term. These are the reasons why we expect gold prices to be under pressure and with 1205 being a strong resistance for now, we expect the prices to consolidate blow 1200.
As has been the case all this week, oil was the star yesterday as well as the OPEC meeting finally got underway and a deal was finally agreed to. It did not appear so 2 days back but as is usual, on the day of the OPEC meeting, everything seemed to suddenly fall in place and everybody suddenly seem to agree for everything. Iran agreed to cut, Iraq also agreed to cooperate and so did Saudi Arabia and Russian as well. So, finally a deal was made and the OPEC members agreed to cut production by an amount that was as per market expectations. This brought cheer to the entire market as a whole and especially to the oil traders and we saw oil push through $48 and try to break through the strong resistance at $49.
It has managed to push through $49 as of this writing and it sits above $50 as of this writing. Expect this euphoria to last for the rest of the week atleast and we expect a test of $53 before there is any serious correction in the oil prices. Traders would be well advised to sit out this round and wait for a decent correction (which will eventually come) before they start loading their longs again rather than trying to chase the market and buying oil at peak prices.
Like gold, silver prices also seemed to be under pressure but what we are beginning to believe is that, with all focus on gold and with import curbs being put in by major consumers like India and China, the attention of investors might turn towards silver (as it is free of any curbs and hence will have better demand) and hence, we believe that in the medium term, silver would continue to range trade and be buoyant as compared to gold.
Apneaman on Thu, 1st Dec 2016 8:29 pm
Jesus fuck. I can practically hear this guy breathing heavily as he works his way to orgasam wiriting this shit. Cancer monkey. I wonder if he invested with the sub prime auto loan sharks. I hope so. POP goes another bubble?
6 million Americans have stopped paying their car loans, and it’s becoming a ‘significant concern’
“Outstanding subprime auto loan balances now stand at $280.2 billion, a record high. For perspective, the pre-crisis high was $249.5 billion, in the fourth quarter of 2007.
In other words, the subprime delinquency rate is creeping up, while the subprime market is ballooning in size.”
http://www.businessinsider.com/auto-loan-delinquency-numbers-from-ny-fed-2016-11
makati1 on Thu, 1st Dec 2016 8:49 pm
MONEY is the god that is destroying the earth.
Ap is correct. So many need more and more money to give them a reason to live. I expect that this great “agreement” will never happen in fact. They will begin lying and cheating on day one. Wait and see.
Damn, it’s satisfying to NOT be concerned about the rise and fall of the price of oil, gold, silver, etc.. And, especially the U$ Market Casino. It is entertaining to observe the gyrations of the peasants whose lives are attached to the ups and downs of a collapsing world economy. The Stock Market reminds me of the last days of the twenties. Those who don’t learn history are doomed to repeat it. LMAO
Plantagenet on Thu, 1st Dec 2016 9:55 pm
We’re still in an oil glut. At these prices any cut in production by OPEC will be replaced by increased production from US tight shale oil The oil glut is going to end at some point—but we’re not there yet.
Cheers@
brent on Fri, 2nd Dec 2016 1:15 am
Yeah I am sure consumers of oil are going to be thrilled that oil companies are getting happy about the rise in gas prices just before Christmas.
Davy on Fri, 2nd Dec 2016 5:35 am
It is a good thing oil is climbing to a range that is healthier for all involved. Demand destruction that has been initiated for several reasons is very dangerous to the stability of our civilization. Demand destruction and its effects on the oil complex is particularly dangerous. If you believe demand destruction is positive because of technology and transition then you like Kool-Aid. Sure there is some of this and it is just enough for fantasy and denial to be realized in our social narrative.
A drop too quick because of broad based demand destruction could be disastrous. A failing oil complex will do this. Oil price increase will help along the oil complex but not save it. There is no saving it because there is no saving globalism. Disaster is coming but the degree and duration is the key element of how bad the die off is going to be. We can still enjoy what is left of life if we sober up and live with less. There are very special things in our lives that can be enjoyed and protected like family and home.
The problem with a healthier oil/economy relationship is the climate and ecosystem situation. It is just another catch 22 we are caught in. Climate needs zero emissions now. Zero emissions means a die off. Waiting even 10 years and it is over. It is likely over now for the climate. If we wait 10 years even hope will be over. I am with Guy McPherson and see extinction in our future. I don’t see it in 10 years because I see a die of and industrial collapse mitigating extinction for a few more decades maybe if we are lucky a century.
I am glad to see oil rise some. I would like to have 3 more years to complete some projects before the whole bottom falls out of the house of cards. I am practicing relative sacrifice now. I am living with less and locally. Not that it matters but it is my way of respecting the “Ecos” and other life. This is not saying I am better than others. I find satisfaction in this personally. I feel it is over anyway so it does not matter if we as a global world change. We can’t change and remain a global world. When you end a global world you have a die off. That is a direct relationship with no get out of jail free card of fairytale happy endings. This is the hard cold facts of the “Ecos”
joe on Fri, 2nd Dec 2016 10:49 am
Oil glut wont end. OPEC cut is a falseflag, the market pissed themselves because some people think they can get it up to 70 or more. The deal relies on too many variables and cant be independently verified. Its a joke, a scam to make you think its opec thats gouging you.
Revi on Fri, 2nd Dec 2016 12:48 pm
Great! Oil is over $50! That’s still about 30 dollars under break even for fracking!
peripato on Fri, 2nd Dec 2016 6:24 pm
“I would like to have 3 more years to complete some projects before the whole bottom falls out of the house of cards.”
This would be a gift. Given that the OPEC deal seems wonkier with every passing day, there are too many loopholes, this latest jawboning of the market will be lucky to sustain higher oil prices for the next 3 months.
GregT on Fri, 2nd Dec 2016 8:44 pm
“Great! Oil is over $50! That’s still about 30 dollars under break even for fracking!”
And about $25 above what we need for the long term continuation of BAU.