It is call Volatility looking for triggers to profit take. Last year was a great analysis of how wrong the bears were me included to a certain point as the trade war heated up. We can see the dec Argentina I think truce + dovish Powell calmed markets that recovered. It was Trump’s new found confidence ( US market tops) to dial up rhetoric and additional tariff that started the slide again. This time compounded by bond yield inversion. This mean easy money policy and if anticipated a 50 basis point cut, markets could have another spike up again.
We are enjoying the gold ride currently but don’t get too complacent. I’m constantly watching at Trump tweets that can change sentiments immediately like we saw earlier this week.
There are a lot of newbies posting now, I hope this isn’t a bad sing for gold. When the herd start talking about buying gold bars enjoy mass, I take notice and be cautious. Mark Mobius commented that money easing will encourage yield seeking and this is where equities come in.
