Gold posts half-hearted, marginal loss in early going
(USAGOLD – 5/14/2019) – Gold is taking a half-hearted loss this morning and stocks are posting a half-hearted gain – not unusual after a day of heady market movement. Gold is down $2.50 at $1299 in the early going after finishing up $14 yesterday. The Dow Jones Industrial Average is up about 80 this morning after losing over 600 yesteray. Silver, on the sidelines for the most part in all of this, is up 3¢.
Though US-China trade negotiations remain front and center, rising tensions with Iran have also begun to weigh on markets. Crude oil is up 85¢ today. Britain’s foreign minister, Jeremy Hunt, pointedly warned Monday “of a conflict happening by accident with an escalation that is unintended.” Yesterday, we had the initial reaction to a major change in market atmospherics. Over the next several days, we could see a more sustained reaction as steadier and more determined hands take the rudder. Under the circumstances, safe havens like bonds and gold are likely to receive a fair amount of attention.
Quote of the Day
“It’s all about relative supply curves – the supply curve for bullion is far more inelastic than is the case for paper money. It really is that simple.“ – David Rosenberg, Gluskin Sheff
Chart of the Day
Visualization courtesy of HowMuch.net
Chart note from HowMuch.net: “About half of the countries in the top ten list are located in the Middle East/North Africa region. Six of these countries–Venezuela, Saudi Arabia, Iran, Iraq, Kuwait, and Libya–are members of OPEC (Organization of Petroleum Exporting Countries). Interestingly, there is no clear correlation between the country’s size and its amount of oil reserves. For example, Kuwait, which has a landmass of 17,818 sq km, has 101.5 Gbbl in oil reserves, whereas Russia, which has a landmass almost ten times larger, only has 80 Gbbl in oil reserves.”