Gold sells off in Asia and Europe, steadies in U.S.
(USAGOLD – March 14, 2019) – Gold sold off steadily during Asian trading hours on weakness in both China’s yuan and Japan’s yen. That weakness in turn is the result of economic stimulus policies sponsored by both countries’ central banks. In addition, reports that U.S.-China trade talks had stalled did not help matters. The downside picked up some momentum in London trading on a House of Commons vote rejecting a “no-deal Brexit.” The developing European economic crisis, as a result, appears tabled for the moment – at least that part of it inspired by Britain’s leaving the Union. That, however, could all change in a heartbeat. Gold steadied at the New York open, but it did not improve. It is off $12 at $1298 in early trading. Silver is off 21¢ at $15.25.
Quote of the Day
“Gold is scarce. It’s independent. It’s not anybody’s obligation. It’s not anybody’s liability. It’s not drawn on anybody. It doesn’t require anybody’s imprimatur to say whether it’s good, bad, or indifferent, or to refuse to pay. It is what it is, and it’s in your hand.” – Simon Mikhailovich, Tocqueville Funds
Chart of the Day
Chart note: This long-term chart on the annual average price of gold since 1970 dispels the notion that gold is somehow volatile or unpredictable and as a result unreliable as a long-term portfolio safe haven. To the contrary, it shows gold living up to its reputation as a portfolio safe haven during times of rapidly changing economic circumstances.