The US stock market hasn't fully appreciated the instability caused by Trump tariffs.. so predicting further turmoils in US stock market. Walmart has indicated they can't absorb cost of tariffs and will pass price increases to consumers. Trade tensions may have eased but Chinese tariffs will be at 30%. And you have baseline tariffs of 10% on everything.. things such as bananas and coffee which US doesn't not produce.
They are number contributing factor to rise POG but I believe the main reason is US debt.. Trump needs to fully retract his tariff policy and reduce US government deficits.. and the easiest way to reduce deficits is not to extend Trump tax cuts. The market has realised that US has a big problem .. increasing borrowing costs.. US 30 yr treasuries almost touched 5%. The avg US Treasury maturity term is about 6 yrs that means half of US debt will need to refinanced at higher bond yields within 6 years... The impact is significant increase in borrowing costs is forecast within the next 6 yrs, one of the reason why Moody has downgraded US debt rating.
The US government unlikely get a handle on deficits and future increased prices from tariffs hampers US fed ability to lower rates in the future. Increase deficits, borrowing costs.. its a downward spiral. Gold safe haven buying will continue... KCN Gold production may be 6% lower than the previous 80koz FY 25 forecast.. but a rise in POG will compensate.
KCN Price at posting:
$1.95 Sentiment: Buy Disclosure: Held
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