Gold down this morning on reduced recession worries

(USAGOLD – 8/19/2019) – Gold’s descent began during European trading hours as yields on U.S. Treasury paper firmed – a sign that recession worries are on the wane at least for the moment. It is down $15 at $1498.  Silver is down 16¢ at $16.96. Market attention will shift this week to the Federal Reserve’s annual conclave in Jackson Hole with chairman Powell scheduled to speak on Friday. “Fed watchers,” reports Bloomberg, “expect Powell to do nothing on Friday to disabuse investors of the widespread perception that the central bank will reduce interest rates by another quarter of a percentage point next month. But whether he’ll open the door to a half-point cut, which some traders are looking for, is unclear.”

Deutsche Bank was out with a longer-term positive forecast for gold over the weekend. “We have increased our gold and silver price forecasts,” it said in a research report released yesterday, “for the next six quarters to reach a level of $1,575/ounce based on our updated view of the macro, including what we see as the primary drivers of gold: real interest rates, the equity risk premium, the US dollar, and central bank purchases. We have shown macro scenarios that could result in gold going above $1,700/ounce.”

Quote of the Day
So why not own something that yields nothing that holds its value than something that yields negative that doesn’t hold its value. So it is ridiculous not to own gold if you’re from any country on earth except for maybe the United States.” – Jim Cramer, CNBC

Chart of the Day

HowMuch graphic of nation states GDP, U.S. and China, one and two

Chart courtesy of

Chart note:  “The United States,” says HowMuch, “is still the world’s largest economy, contributing 23.9% to GDP. China, the world’s second largest economy, had its slowest quarterly GDP growth in nearly 30 years. Half of economists in a recent poll have predicted an economic slowdown in the U.S. within the next year. Unresolved trade tensions between the U.S. and China have investors on edge about global economic growth.”

The World’s 10 Largest Economies by GDP
Unted States – $20.49  trillion (23.89%)
China – $13.61  trillion (15.86%)
Japan – $4.97  trillion (5.79%)
Germany – $4 trillion (4.66%)
United Kingdom – $2.83  trillion (3.29%)
France – $2.78  trillion (3.24%)
India – $2.73  trillion (3.18%)
Italy – $2.07  trillion (2.42%)
Brazil – $1.87  trillion (2.18%)
Canada – $1.71  trillion (1.99%)

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