Let’s start this Monday morning with some headlines:
Money is pouring into the U.S. Ten Year Treasuries as the yield just a couple of weeks ago was at 2.60 percent, today the ten year is yielding 2.23 percent.
Gold virtually unchanged this morning as it too recently has been a home of the safe haven investments like the U.S. treasuries.
The dollar index approaching the 100 level once again as the President continues to promote his idea that a weaker dollar is good for our economy. It is also happens to be good for the price of gold.
Gold ETFs up for the fourth day in a row, adding a healthy 356,000 ounces into the funds.
As I indicated before, I expect gold to move at a steady pace higher as all the world financial headlines and political uncertainties give the price a boost.
If you have been following my most recent comments, you’ll see that the Wall Street Gold traders are on the same page, continuing to hold on to their long positions with adjusting their trailing stops, as the market trends higher to protect their earned profits.
Now news over the pond, The volatility in the euro increased to the highest levels since before the Brexit vote as our “Golden Lady,” Ms. Len Pen, increases the pressure on her rivals just before the French election. The polls indicate a very tight race without any one candidate getting a majority. The most recent figures show Ms. Len Pen and Mr. Macron at 23 percent followed by Mr. Fillon and Mr. Melenchon with 20 and 19 percent respectively. At this point the chance a of a run off in May is almost a sure thing.
Ms. Le Pen continues her stance that France is better off out of the Euro Zone. So if she wins, a referendum on whether to exit the EU is expected in just six months after she is sworn in. Obviously if this happens, the price of gold will be a big benefactor of the exit of France from the EU.
Now to the news the whole world is watching.
Everyone was expecting something significant to happen as the North Koreans celebrated the most important holiday of their year, called the “Day of the Sun.” Thankfully nothing of consequence happened Saturday in North Korea except a failed missile launch.
One must keep a close eye on North Korea as it continues to be like a boiling pot of water. Since Kim Jong-un
didn’t test his sixth nuclear test on Saturday, let’s have some fun and call him the “Potato” and President Trump the “Egg.” No I’m not going crazy. Just think when you have a boiling pot of water in front of you and you drop a potato and an egg in the pot at the same time. What happens after a couple of minutes? That’s correct, the potato softens and the egg gets hard. That’s exactly what happened this weekend. Kim Jung-un softened up a bit. Maybe the advice of the Chinese or the “hard” stance taken by the U. S. gave him second thoughts. Nonetheless, I’m sure this confrontation is far from over.
Have a wonderful Monday.
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