Gold trending higher, a presidential tweet disrupts idyllic market morning
Gold is trending higher this morning after hitting an overnight low of $1335. It is now trading at $1348 (+$2) and level with Friday’s close. Silver is up slightly at $16.47 (+9¢). At the moment, tensions in Syria have wound down and the trade war with China has returned to the back burner. All is right with the world. Stocks are up. Oil is down. The bond market is trading quietly.
Spoiling this otherwise idyllic scene, we see that the dollar is plummeting. Might it be an early, first response to the latest presidential tweet? “Russia and China,” he warns, “are playing the Currency Devaluation game as the U.S. keeps raising interest rates. Not acceptable!” Devaluation, as the trade war manual reads, begets devaluation. Resurrecting an old concern the president reminds the markets that the strong dollar policy may have become a thing of the past.
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