Gold again had a strong week, remaining above $1,280 all week due to several geopolitical events occurring simultaneously, including the troubled French elections, the recent MOAB (Mother of All Bombs) dropped by the U.S. in the mountains of Afghanistan, saber-rattling by North Korea and Iran, another terrorist attack in France, the coming U.S. federal debt limit crisis, the crackdown on dissent in Turkey and the U.S. air strikes in Syria. Gold did dip below $1,280 on April 24, but it was still up 2 percent ($25) for the month of April.

“Why Gold Could Keep Rising” – Barron’s, Monday April 24

The Commodities Corner column in the April 24 edition of Barron’s featured a piece titled “Why Gold Could Keep Rising.” The column opened by saying:

“After a sharp drop at the end of 2016, gold has regained its luster, and some investors are betting that uncertainty in the U.S. and abroad is likely to keep prices elevated this year. Gold is up nearly 12% in 2017, to $1,289.10 a troy ounce for June contracts on Friday. The precious metal’s appeal reflects concerns that the U.S. economy may have slowed in the first quarter, as well as worries about the outcome of the coming elections in Europe, where populist candidates loom larger than before.”

For April, gold performed as more of a “crisis hedge” than an inflation hedge. While overall there has been a drop in inflation rates, global unrest has worked to buoy the metal’s price. In mid-April, all three major inflation indicators turned negative, yet prices took off that week – mostly due to the outbreak of military action in Afghanistan, Syria and the Korean peninsula. In the past two weeks, oil prices have dropped 6 […]