One man’s opinion. . .

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.

 

Share
This entry was posted in all posts. Bookmark the permalink.

Comments are closed.