Fear Assets Don't Budge On North Korean Missile Launch
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Tuesday was a wild day in markets in general, but the biggest surprise was the lack of movement in gold and silver after the North Korean missile launch. News hit the tape Tuesday that Kim Jong Un was at it again, launching another missile that fell harmlessly into the ocean.
The most interesting fact of the missile launch was the lack of movement in the fear assets -- gold, silver bonds and the VIX. Gold barely moved all day and on the news popped $2 to $3, which under the circumstances was very strange. The bonds and VIX didn’t move either, which was a sure sign the equity markets were going to rally huge, and they did, making new highs across the board.
Once again $1,300 appears to be a barrier for gold, but the pattern looks great. This is a key spot for the metals. They will fail at resistance and remain in consolidation or they will break out to the upside, starting a new up leg. Either way, gold and silver are preparing for the next bull market.