Gold Prices: Why Doesn’t a Trade War Help?

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?

 Related: Is Indian Gold Demand Slipping? An Expert Weighs In. 

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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