State Of The Union, Equities, Metals And More
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
On Tuesday night, President Trump delivered the State of the Union and had some rosy thoughts about jobs, the economy and general health of the country. It may have been one of his best speeches while he has been in office.
While the equities have picked up $6 trillion in value, the same can’t be said for the metals. Since the election, gold is slightly higher and silver is lower. The chase for yield has kept the metals in check and should do so until they don’t. The metals have not only fought the biggest bull market in history, they are fighting the cryptocurrencies for alternative dollars.
We are long-term bulls in the metals and as investors will continue to buy; however, at these levels, gold looks to have run out of gas. With the dollar on multi-year lows, the metals have not performed well, which is a concern in the short term. We are accumulating long-term physical gold which we will never sell, but are sellers of futures here in the short term.