The President authorized Tomahawk missile strikes on Syrian targets in retaliation for the chemical weapons killing of what were alleged to be innocent Syrian civilians. The result, to us, as far as the metals go, is a 1% bump in prices, as gold trades some $13 higher overseas, overnight, Thursday.
Any such international de-stabilization as this will always result in a bounce in gold. The question, of course, is whether it will be meaningful, and stick. My personal opinion is that we’ve sent a message to the entire world that America is back, and that a greater degree of global safety and stability might be counted upon… which, in the larger picture of things, may actually be harmful to gold. I’ll take a cut in gold prices for that reason, gladly!
The larger question involves the Trump domestic agenda, and what it will mean for our economy, inflation, and their influence on gold. I don’t believe for one moment that the Donald will throw up his hands, sit down, and quit trying to advance his agenda and policies. Healthcare insurance, taxes, excessive regulations… all these are on the table. All of these agenda items will advance to one degree or another, and at whatever pace Congress can be urged to move. All the proposals are steps in the right direction, from a perspective that asks, what will this mean for gold? Since all the objectives should result in a greater measurable inflation; expect gold to shine brighter.
Then, there’s this, too: From a previous post, there was a chart showing the long-term wedge that gold price has formed, and how that it is coming to its pointed conclusion. For all traders who rely on such chart technicals, they will be expecting price to breakout one way or the other, and as that is detected, money will move.
I intend to watch, and wait. We really want to be on board for when a truly large advance takes hold. Mining shares will appreciate on the order of multiples, and we will make a lot of money when they do!
Here’s to your accumulation of real wealth!
Harold F Crowell