Gold gives back portion of yesterday’s post-agreement gains
(USAGOLD – 1/16/2020) – Gold gave back a portion of its gains posted late yesterday in the wake of the US-China trade agreement signing at the White House. It is down $2 at $1554. Silver is level at $18. Gold Newsletter’s Brien Lundin had an interesting take on yesterday’s post-agreement upside. “. . . [F]or the vast majority of the time that the markets have been laboring under the uncertainty of the China trade tensions,” he wrote, “any good news was considered bearish for the monetary metals and bullish for the dollar. Instead, gold and silver are rising nicely on the closing of this first phase of the deal, and the dollar is lower. A 180-degree shift in sentiment like this is very telling to me. Over my decades in the markets, I’ve learned that a true bull market is one that interprets seemingly bearish news as bullish. That’s what’s happening right now.”
Chart of the Day
Chart note: This overlay chart shows gold and oil pretty much rising in tandem over the past year with gold playing catch-up in the second half of the year.