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Trade Wars, Tariffs And Uncertainty

Commentaries & Views

World markets are in a funk this morning as the talk of trade wars and tariffs accelerate. China has retaliated with dollar-for-dollar tariffs, creating instability in the global equity markets. After rallying almost 400 points on Tuesday, the Dow is down 600 points this morning.

With all the volatility in the equity markets, the metals remain in the same consolidation pattern they have been in for months. Gold is up about $18 for the week and silver about 10 cents. The rally in the metals has done nothing to indicate they are going to break out to the upside, as neither has been able to take out their overhead resistance levels.

With all this volatility, you would think the fear and uncertainty would have brought new money to the metals, but it hasn’t. The same pattern exists -- gold should fail if it reaches $1,365 and the ratio between gold and silver continues to widen. The best trade here appears to be selling gold and buying silver.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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