GLD Flirting With Key Support Ahead Of FOMC Minutes
Major equity indexes appear to have resumed their uptrend following a brief pullback in late June. U.S. stocks in particular have been charging higher since investors returned from the Independence Day Holiday weekend on hopes that the Federal Reserve will not prematurely scale back on stimulus efforts, which was the original concern that sparked the broad market sell-off on May 22nd [for more commodity futures news and analysis subscribe to our free newsletter].
Aussie Dollar Weakness A Dangerous Sign For Gold
The commodities front remains mixed as the U.S. dollar’s recent rally has put downward pressures on many resource prices. Furthermore, the ongoing bull run on Wall Street has prompted many investors waiting on the sidelines to jump into equities in lieu of chasing paltry yields in the bond market or lackluster returns in the commodities space [for more market news and analysis subscribe to our free newsletter]. Surprisingly, gold has managed to keep afloat in recent weeks amid the stock market euphoria, which is a commendable feat given the extreme selling pressures it saw earlier in April. The outlook for the yellow metal remains mixed, however, as technical patterns and currency market trends are hinting at another round of selling in the near future.
Can GLD’s Rebound Weather FOMC Minutes?
The bulls are at it again this week as stimulus hopes have taken center stage at home and in the eurozone. Investors on Wall Street continue to digest corporate earnings results, which for the most part are coming in better-than-expected; however, looming FOMC minutes and Friday’s monthly employment report will surely steal the spotlight this week. Overseas, investors are anticipating for the European Central Bank to cut rates down to 0.5% from 0.75%, potentially paving the way higher for gold prices as inflation fears return [for more market news and analysis subscribe to our free newsletter].
Silver’s Bull Run Nears Resistance
The bull parade continues on the equity front as investors have been hesitant to take profit even after Wall Street’s massive run-up at the start of 2013. Commodities, on the other hand, have lagged behind across the board as improving confidence over the global recovery has prompted many to jump into riskier assets, with upbeat earnings results further driving equity inflows. While precious metals may continue to face headwinds as optimism takes its toll on the safe havens, industrial metals like silver could have brighter days ahead as a turnaround in the global economy implies growing demand for raw materials [for more market news and analysis subscribe to our free newsletter].
Under The Hood: Junior MLP ETF (MLPJ)
The new year has proven to be surprisingly kind to equity investors as “risk on” sentiment has prevailed on Wall Street. Nonetheless, savvy investors remain wary as stocks can just as easily give up all of the profits accumulated on the year, if not more, at the first signs of economic turmoil. With interest rates around the globe expected to remain at ultra-low levels throughout 2013, the hunt for meaningful yield continues, which brings our focus to the newly launched Junior MLP ETF (MLPJ) from Global X [for more MLP news and analysis subscribe to our free newsletter].
Which Oil ETF Is Right For You? OIL vs. USO vs. USL
Oil is arguably the most important commodity in the world today. The commodity and its derivatives make their way into essentially every application of modern life, from transportation and gasoline to plastics. Because of its vast applications, oil has also become one of the most heavily-traded commodities on the market, offering investors both the necessary levels of volatility and liquidity needed to make a lucrative trade. And thanks to the rapid expansion of the exchange-traded fund industry, investors now have several ways to gain access to the arguably most useful commodity in the world. Below, we outline the three most popular oil ETFs and which one will fit your investment objectives [for more oil news and analysis subscribe to our free newsletter].
Beware Of The Falling Knife: GDX Technical Update
Major U.S. equity indexes have managed to hold on to gains thus far in the new year, surprising countless traders who were convinced that the “fiscal cliff” resolution rally would be short-lived. The picture isn’t entirely rosy, however, given the growing probability of a pullback on Wall Street. With no major economic data releases taking place on the homefront this week, investors will turn their focus to corporate earnings, which could serve as a harsh reminder of the sluggish economic recovery at hand [for more market news and analysis subscribe to our free newsletter].
iPath Debuts New MLP ETN (IMLP)
The MLP ETF space can add one more to its list, as the 12th fund made its debut on Friday. The iPath S&P MLP ETN (IMLP) hit the market and looks to compete with some of the biggest names in the space. The MLP sector has been one of the most talked about in recent years as paltry yields around the fixed income sector have led to investors finding their dividends in different places [for more MLP news and analysis subscribe to our free newsletter].
