Gold and Ukraine, page-7

Gold soaring during stress times of conflict is always a given. Anyone been following gold can tell you this in all historical context. Can it sustain the rally is what I am more interested because a price spike is just that, an ultra short term euphoria.

I think a gold sustaining move up will be highly dependent upon how far can the Europeans and their friends push the sanction tool without hurting themselves economically. Another consideration is how will NATO Europe mitigate the gas supply deficit immediate to their current predicament, never mind the long term gas supply infrastructure.

The reality is that economic always outweighs the politics because economic numbers are factual while political justifications are usually manipulated through persuasive opinions, think tanks and all the media tools to convince.

That move in gold and oil as US markets opened with the height of the initial surprise Russian attack drove the fear sentiment to its crescendo and price collapsed almost as fast as the rise, always a bad sign at the top. Friday saw the follow through selling in both commodities.

Longer term down the line, everything will depend on how far the conflict continues because oil is a major component of QT when it gets too expensive at the petrol pump. Inflation is unfortunately here to stay and if Feds don't control it, we know what is going to happen regardless if the economy is tanking. Stagflation perhaps?