DMR–Gold pushes higher in early trading, G-7 this week
Gold pushed higher in early trading today – up $5.50 at $1297 – as trade war concerns began to slowly seep into investor thinking. Silver is up 12¢ at $16.52. National leaders from the G-7 will meet in Quebec this week amidst a contentious atmosphere unlike anything seen in recent years. The dollar is down this morning giving impetus to gold’s upside.
Meanwhile, concerns continue to mount that Italy and its massive sovereign debt could trigger a general crisis for the euro and the European Union and beyond. Carmen Reinhart, a Harvard economist who specializes in crisis analysis, warns of how problems with the euro can have a wider, contagion effect: “Farther afield,” she says in Project Syndicate article, “the weakness in the euro has translated into dollar strength, which means a sustained beating for emerging markets, particularly those with US dollar debt. The flight to quality that accompanies outbreaks of financial turbulence is reinforcing a shift away from some of the riskier asset classes of which emerging markets are a part. International equity markets have not been exempt from contagion.”
Quote of the Day
“However, the media credits or lambastes the president of the day as though he and he alone is in charge of the country. Whatever happens is treated as his accomplishment or failure. And, typically, presidents play into this—taking personal credit for perceived accomplishments within the country and disavowing blame for perceived failures. At present, the conservative media is emphasising low unemployment as an achievement, just as the liberal media did during the Obama Administration. And yet, since the Clinton Administration, the unemployment figures have been consistently fudged. Those who work only part-time are defined as ’employed.’ Those who have given up pursuing employment are removed from the unemployment equation. If those numbers were plugged back in, US unemployment would be in the double-digits—during both the Obama and Trump presidencies.” – Jeff Thomas, Mises Institute
Chart of the Day