Gold Prices: GLD Jump Due to Trump Threat? [VIDEO]

Donald Trump conducting a speech at the Phoenix Convention center podium

Donald Trump speaking with supporters at a campaign rally at the Phoenix Convention Center in Phoenix, Arizona.

Gold prices jumped suddenly yesterday as Donald Trump’s twitter account barked again.  This time it was toward North Korea, whom, you may remember, has been on a missile-testing binge of late.  Shortly after The Donald said he would respond with “fire and fury like the world has never seen” if North Korea doesn’t stop its escalations soon.

Following a poor morning showing, gold prices rallied in New York following this latest outburst by The Donald.  The 5-day chart clearly shows GLD weakening, only to climb out of its pit and is heading back toward resistance.

Related: Gold News: The Curious Case of Bull
A 5 Day SPDR Gold Trust Fidelity Chart

That, folks, is what we call “geopolitical instability.”

Here is the 6-month chart so you can see the technical picture forming:
6-Month SPDR Gold Trust Fidelity Chart

Now, do we know what will happen next?  No, of course we don’t.  When two of the most highly unpredictable world leaders clash, no one knows the outcome for sure.  It’s all a game of checks, balances, and guesses.  Your Gold Enthusiast only hopes it all doesn’t end with more shooting and innocent lives lost.
Related: Is Gold “Under Pressure” in the Short Term?

With gold prices rising — Is this a good time to jump in and buy some?  If you don’t have any, it’s not a bad time to buy a little.  It’s probably not a great time to buy a lot.  If either side backs down gold is likely to slide very suddenly.  But if someone fires anything bigger, well, gold is likely to jump.  Along with everyone’s nerves.

The technical picture says “buy some” if GLD breaks above 121, which your Gold Enthusiast would interpret as “buy some if GLD hits 121.25”.  But he wouldn’t throw the farm at it.

In the meantime we’re keeping our eye on it all, fingers crossed. For more of the latest gold prices details related to Trump’s threat on North Korea, view the video below.

Signed, The Gold Enthusiast

DISCLAIMER:  The author has no positions in any mentioned security.  The author is long NUGT and JNUG and may add to or sell these positions in the next 48 hours.

Related: Gold News: Are We Nearing a Crash?


About the author

Mike Hammer

Mike Hammer has had a wide-ranging career, with trading and investing as a continuing theme. Mike graduated from UC Berkeley with a business degree, then worked with Macy's in their operations arm. He left Macy's and spent a summer trading his own account, which taught him a lot about trading in general and markets in particular. Trading through the Black Monday and the Crash of 1987 showed him how most people are unprepared for upheavals in their trading. He then joined Waddell & Reed as a financial advisor, helping regular people understand their finances and meet their life goals.

Then came the usual story - Mike met and married the lady of his dreams. They moved to upstate New York, where Mike worked first for a small manufacturing consulting company, then Cornell University. While loving the work and the higher-education atmosphere, Mike missed the world of finance. Eventually, he signed up for stock trading coaching with the Adam Mesh Trading Group, to learn from people who understood modern markets. Within a year, Adam asked Mike to become a stock trading coach.

Since then, Mike has trained over 200 individuals, spoke at several national conventions, and is a frequent contributor to conference calls across the Adam Mesh community. Mike writes The Gold Enthusiast daily newsletter, runs the Golden Hammer trading service, and participates in the Mesh Private Portfolio. He also keeps a position in international education which keep him in touch with "the student mindset". Mike closely follows the gold, energy, and financial sectors. His motto is "Plan your trade, then trade your plan!"

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