Traditionally gold is seen as insurance against big, bad, unforeseen geopolitical troubles. Big bank failing? Gold prices inch up. Two countries go to war and threaten to drag others in? Gold heads up. Head of one of the world’s top countries declares a trade war on huge up-and-comer?
Well… typically gold would shoot up. But this time around, not so much. Gold’s lack of a reaction has meant a lot of head-scratching among gold bulls. According to the Gold Enthusiast, gold is stagnant because there are other places where you can get a higher current return. According to analysts in the CME Group – well, you’ll just have to read today’s featured article to find out what they’re saying.
Let’s just say the two answers aren’t too far apart, and over time they converge into the same answer. Doesn’t really matter if they’re slightly different now if they get to the same place in the end, right?