Gold turns south ahead of U.S.-China trade meeting
(USAGOLD – 10/10-2019) – Gold turned south ahead of today’s meeting between U.S. and China trade negotiators. It is trading at $1503.50 – down $8.50 on the day. Silver is down 25¢ at $17.62. Gold spiked to $1516 during Asian trading hours, then went sharply lower at the open in New York, as investors attempted to sort out the prospects for today’s meeting.
The dollar is also down sharply in today’s trading further illustrating a point Michael Pento makes in an article recently published at the Gold Eagle website. “[T]hose who believed the US dollar would increase its buying power against gold have been dead wrong,” he says. “This is because the primary driver behind the dollar price of gold is the direction of real interest rates. Therefore, it is imperative not to measure the US dollar’s real strength by measuring it against other flawed fiat currencies that are backed by even more reckless central banks. Instead, the genuine value of the dollar should be weighed against real money…gold.” Since late February, the U.S. Dollar Index, which measures the value of the dollar against a basket of currencies, is up 2.87% while gold is up 13.12%.
Chart courtesy of TradingView.com
Quote of the Day
“The world clings to its old mental picture of the stock market because it’s comforting; because it’s so hard to draw a picture of what has replaced it; and because the few people able to draw it for you have no interest in doing so.” ― Michael Lewis, Flash Boys
Chart of the Day
Chart note: The U.S. federal government added $1.481 trillion to the national debt in 2018, the third-largest increase on record.