Going for Gold

Published on
December 12th, 2018
Duration
15 minutes

Going for Gold

Trade Ideas ·
Featuring Michael Purves

Published on: December 12th, 2018 • Duration: 15 minutes

Michael Purves, chief global strategist at Weeden & Co., describes the setup he sees in the gold market and considers the potential for a short-term pop. In this interview with Brian Price, he lays down his thesis and reviews the best way to play the move. Filmed on December 10, 2018.

Comments

  • BP
    Byron P.
    11 January 2019 @ 10:11
    this is the same guy that in april, advovated SHORT dollar from 94 on the back of "positive eurozone and asian financials"....two weeks later, the euro tanked from 1.23 to 1.15. DXY went to 97
  • SB
    Stewart B.
    21 December 2018 @ 21:26
    Imagine you had to buy and hold an asset for the next year. If you don't feel good about holding stock, sov bonds or corp bonds, where would you park your money? ;)
  • DY
    Dmytro Y.
    17 December 2018 @ 06:27
    All In Sustaining Cost to produce Gold are usd 800-1000. Where does the 1200 come from??
  • RA
    Richard A.
    15 December 2018 @ 21:16
    Like the option trade but “Data getting better in Europe”, say what?!?
  • GR
    George R.
    13 December 2018 @ 00:35
    As I write, gold is so far drawing out a rally with waves overlapping. If you believe in that stuff, seems the move is corrective of the previous longer term down trend. Correction probably further to go.
    • WM
      Will M.
      15 December 2018 @ 03:19
      Martin Armstrong agrees its not golds time yet..... its coming but $1360 likely to hold.
  • DS
    David S.
    12 December 2018 @ 21:33
    Even with no Fed rate hikes in 2019, they probably will continue quantitative tightening. DLS
    • AS
      Amitesh S.
      13 December 2018 @ 08:44
      important point!
  • CB
    C B.
    12 December 2018 @ 20:29
    Brian Price is honing his craft! Thank you for the content.
    • BP
      Brian P. | Real Vision
      12 December 2018 @ 20:49
      You're welcome! And thanks!
  • T
    Thomas .
    12 December 2018 @ 18:49
    Let’s have more of Purves
  • PC
    Philip C.
    12 December 2018 @ 18:21
    The marginal cost of production of gold is of fairly limited importance, because gold has a huge stock to flow ratio.
    • TS
      Tarek S.
      12 December 2018 @ 23:45
      I would add that marginal cost of production is also variable and correlated to price, meaning that as price declines, so will production costs as more expensive mining operations are taken offline and cheaper mines remain. This should theoretically also track marginal demand. Nevertheless, still a good video with some useful considerations.
  • tW
    tgwtom W.
    12 December 2018 @ 15:53
    Momentum Structural Analysis tweeted on 12/7/18 : With this week's gold settlement, MSA issued a report to our subscribers with the following headline: "Gold to take out 5 years of highs in next 50 trading days."
    • DW
      Daniel W.
      12 December 2018 @ 18:42
      MSA has been wrong on this for years.
    • MZ
      Martin Z.
      13 December 2018 @ 06:07
      Purves may have been responding to Michael Oliver's well-publicized call when he said he doesn't expect gold to go to "1400 in the next few weeks." (Oliver's call translates to $1378+ gold in about 10 weeks.)...Ignore MSA if you like, but it is rare for Oliver to make such a bullish call on gold within such a specific time frame.
  • sT
    sid T.
    12 December 2018 @ 10:14
    Michael Purves is back! He is one of my favourites. I wonder how a rate hike on the 19th of December impact this. Anyone?
    • DW
      Daniel W.
      12 December 2018 @ 18:41
      Last year the rally in PMs started right at the december rate hike.
    • MZ
      Martin Z.
      13 December 2018 @ 06:14
      A December hike is baked into the cake, but if the Fed continues backpedalling about next year, the market might respond as if it had stayed neutral (or worse). But regardless, many other factors are lining up for the metals - including seasonality - so a repeat of 2016 is certainly possible - perhaps even probable.