Gold down on Mnuchin ‘shot across the bow’ comment

EARLY REPORT

Gold was down moderately in the overnight markets then ratcheted down further in early U.S. trading on remarks from Treasury Secretary Mnuchin that the president’s tweet yesterday was “a shot across the bow” and not a threat of imminent U.S. action. (“Oh, sorry about that chairman Xi, the president was just kidding.”)  Since then it has recovered a bit and is now trading at $1343, down $6 on the day.  Silver is trading steady at $16.72.

Markets these days, including gold, are incredibly fickle and unsure of themselves causing abrupt turns one direction then another. Nothing seems to make a lasting impact.  The Fed will be out in force today with speeches scheduled from Patrick Harker (Philadelphia Fed), Charles Evans (Chicago Fed) and Raphael Bostic (Atlanta Fed).

Chart of the Day

Chart notes:  Too often gold’s critics make the claim that gold reacts unfavorably to rising interest rates.  That claim is not borne out by the record.  To the contrary, since the Fed began raising interest rates in 2016 the price of gold has tracked higher, as you can see in the chart above.
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