Gold News Today

Reuters/Huizhong Wu/1-19-2020

USAGOLD note:  Your guess is as good as mine when it comes to assessing the net effect of this statement on (a) financial markets in the short run, and (b) the global economy in the longer run.  At first reading, it looks like some judicious backtracking, but we might be reading more into it than what was intended.  It will be interesting to see if the markets deem it worth a reaction when they open a few hours from now.

CNBC/Yun Li/1-18-2020

“The S&P 500 has soared 12% since the beginning of October. Not only does the rally defy many tried-and-true economic indicators, it also ignores the ongoing profits slump, leading many Wall Street strategists to urge caution.”

USAGOLD note:  This article raises the caution flag on the current stock market euphoria.

DAVOS WATCH

Bloomberg/Enda Curran/1-18-2020

“Strategists at Bank of America Corp. are already telling clients to brace for a ‘ground-breaking ‘peak decade’ that will disrupt business and investing.”

USAGOLD note: This year’s Davos theme, as suggested in the headline above, is likely to elicit some interesting commentary and analysis from the participants.  We will track the conference here – as we have the last two years – and invite you to stay tuned.  The meeting begins today and runs through Friday, January 24th.

Related: Trump to mingle with elites in Davos/Bloomberg/Josh Wingrove/1-19-2020

Image courtesy of World Economic Forum [CC BY-SA (http://creativecommons.org/licenses/by-sa/3.0/)]; Klaus Schwab Founder and Executive Chairman of the World Economic Forum.

CCN/Josiah Wilmoth/1-15-2020

“Wall Street bought the rumor on President Donald Trump’s ‘phase one’ trade deal with China, but the world’s largest hedge fund says that investors should be prepared to sell the news and park their cash in the next asset primed for a surge – gold.”

USAGOLD note:  Wilmoth identifies three catalysts for Bridgewater’s forecast gold is going to $2000 – 30% higher than current prices: (1) a permanent shift in Fed monetary policy; (2) ‘boiling conflict’ in China and Iran; (3) political turmoil in the United States. Still early in the election cycle, many overlook political turmoil with respect to its effect on the price of gold.