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ScotiaBank/Metals Strategy/5-4-2020
“ON risk, Buffet has exited one the main causality sector (airlines), and together with bubbling geopolitical tensions, the temptation to sell in May and go away is even more appealing. We have argued tariffs and COVID-19 are cousins (of protectionism), thus Gold – usually a decent macro leader – is maintaining some COVID-19 premium, as markets begin to price in what trade wars failed to do (an escalating US-China blame game, real bordering up of nations and economies where friends/supplies chains are carefully chosen.)”
USAGOLD note: Interesting summation from the banking firm that just recently gave up its long tenure in the London gold market ……
Cartoon courtesy of MichaelPRamirez.com