Gold pushes higher on trade woes
(USAGOLD – 12/3/2019) – Gold pushed higher in overnight trading as the Trump administration threatened and/or escalated trade clashes on several fronts. The yellow metal is up $12 on the day at $1475. Silver is up 10¢ at $17.03. Most notably, the president said he “would be willing to wait for another year before striking a trade deal with China,” according to a Bloomberg report this morning. Adding to financial markets’ angst over trade, the Trump administration also threatened France with sanctions and imposed new tariffs on steel and aluminum imports from Brazil and Argentina.
Today’s price advance comes in the face of a generally bearish bias among tech analysts for the near term. Over the longer haul, though, Agnico Eagle’s CEO Sean Boyd has a more bullish scenario in mind. “We’re still in that bull market that started in 2015. This is just the initial phase,” he recently told Kitco News. “We think in this cycle gold will hit a new high in U.S. dollars. Ultimately, we’ll get to $2,000, may take two or three years.”
Chart of the Day
Chart note: Please note that two of the top five gold producing countries – China (#1) and Russia (#3) keep most of their production at home as additions to their national reserves.