Only about $15 dollars in gold’s run-up over the past roughly month and a half has had to do with North Korea. There are much more elemental forces at work:
– Increasingly difficult sailing for the Trump administration’s pro-business, pro-growth agenda with multiple parties to blame
– The Fed’s inability to move forward on its desire to raise, or should I say normalize, interest rates
– The over-valuation in the stock market which, in turn, has inspired professional money to diversify with gold being one of the avenues
– The possibility that there is more than enough rancor in Washington to cause a serious problem when extending the debt ceiling comes up for a vote. Repercussions would follow any delay. . . . . .
This is not to say that the situation with respect to North Korea is anything but dangerous and having an effect on gold prices. However, it is superimposed over a market that is also reflecting fundamental economic concerns.