Kerr Mines Inc (KER)

[goldenpolarbear]

« ... Sprott Gold Report: Tariff Tension - Trey Reik (02/08/2018)

Sprott Money Aug. 3, 2018 8:08 AM ET https://kerrmines.com/

»... All of a sudden, the leading question with respect to precious metals has become, "Why isn't gold doing better?" After trading in a bullish consolidation pattern for the past 18 months, gold appears to have lost its mojo and is flirting with technical breakdown. Given daily Trump-tariff headlines, shouldn't gold be reacting more positively? In this report, we offer a few thoughts on gold's recent performance.

Perhaps because the gold price is influenced by so many simultaneous variables, the gold conversation is frequently punctuated by protests from one contingent or another that gold is failing to perform as advertised. In recent weeks, apprehensions over an accelerating global trade war have unsettled traditional asset classes. Knee-jerk reasoning suggests any variable so disruptive to broad markets should be lighting a fire under the gold price, right?

Well, it's just not that simple. Without question, the asset class most negatively impacted by President Trump's developing skirmish with China has been commodities. As shown in Figure 1, the Bloomberg Commodity Index (NYSEARCA:BCI) has been under heavy pressure ever since the Trump administration imposed its steel and aluminum tariffs on June 1 (red arrow). Then, when the Treasury Department announced late on July 10 that an additional $200 billion of Chinese imports were being slated for 10% tariffs, commodities rolled off the cliff (red circle).

https://seekingalpha.com/article/4194327-sprott-gold-report-tariff-tension-trey-reik-02-08-2018

http://sprott.com/investment-strategies/physical-bullion-trusts/