Gold up modestly as markets reconcile opposing viewpoints
Gold is up modestly at $1328 (+$3) in early trading as markets attempt to reconcile a trio of concerns – a massive issue of U.S. government debt this week, rising oil and commodity prices and background trade and geopolitical tensions between the United States and a host of foreign countries. Some see the glass as half full, other see it as half empty on all three issues, a situation that translates to see-saw markets that objectively cannot seem to find their footing. Silver is also up a bit at $16.71 (+5¢). Even the dollar cannot seem to make up its mind – a very good day yesterday has given way to a not so good day today.
Chart of the Day
Chart note: Oil hit a three-year high today – continuing its recent triek higher on Mideast concerns, specifically the confrontation between Saudi Arabia and Iran taking place in Yemen. In at least a generalized sense oil and gold have been traveling companions since 2000, though not in lock-step. Gold, too, has held up better than oil in the down times – oil being the more volatile of the two. Oil prices are important in the context of inflation because so much of what is produced or manufactured in the United States has an oil component in the pricing equation.