Morning Snapshot: Gold choppy at high end of range

USAGOLD/Peter Grant/08-22-17

Gold continues to trade within the recent range below $1300. Gold is oscillating as risk appetite ebbs and flows amid varied political and geopolitical risks. However, those risks should keep gold underpinned.

President Trump’s speech last night suggests the U.S. is in Afghanistan to stay. He also ratcheted-up pressure on Pakistan, calling them out for providing “safe havens for terrorist organizations.” Mr. Trump then called for a strategic counter-terror partnership with India, Pakistan’s primary regional rival.

The U.S. calendar has the FHFA home price index for June as well as the August Richmond Fed index. Later this week we’ll get July durable goods orders and big speeches in Jackson Hole from Fed Chair Yellen (financial stability) and ECB President Draghi (fostering a dynamic global economy).

Yesterday Treasury Secretary Mnuchin went to Ft. Knox to check on our gold. I’m happy that his assessment is that the “gold is safe.”

However, an audit of the reserve asset that makes up 74.5% of America’s total reserves still seems appropriate. Is the gold really safe if there are multiple claims on those ounces?

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