We had what appears to have been a watershed moment in financial markets over the last week.
Gold
The Outlook for Physical Commodities Might Remain Negative
Without a dose of improved US economic news and a reversal in the Dollar’s uptrend, the outlook for physical commodities might remain negative.
Is the Outlook Toward the US Economy Too Lofty?
This week we have to wonder if the outlook toward the US economy is too lofty for the recent valuation in the Dollar.
Evidence of US Growth Has Pushed the Dollar Up
The US economy has bulldogged its way to growth in February, despite adverse weather, ongoing energy sector layoffs, adverse foreign exchange rate action and periodic talk of rising US interest rates.
Migration Toward a Global Recovery
Not surprisingly, the Euro zone debt crisis continues to linger, and the situation in the Ukraine remains highly fluid.
Negative Sentiment is Overblown!
Recently a talking head on a major television business program was lamenting the ongoing pressure on equities due to the weakness in energy-related shares.
Commitment to a Return to Growth
While the pace of the world economy remains disappointing to most commodity markets, a long list of central banks are exhibiting a commitment to a return to growth.
The World Economic Outlook Downshifted
The question of valuations was apparently answered recently, as stock prices fell sharply despite a very favorable psychological kick-off to the US earnings cycle.
The World Economy Continues to Claw Its Way Toward Recovery
With several weeks of Dollar weakness, a series of new highs in global equity markets and significant volatility in the Goldman Sachs Commodity Index, one might view the next two weeks as extremely critical for commodity prices.
Gold futures impacted by Russia-Ukraine tensions
Tensions between Russia and Ukraine prompted increased demand for storage havens on Tuesday as gold futures rose in value and barreled toward the threshold price of $1,400 per troy ounce, according to Bloomberg.