Gold moves higher on ‘China tariff’ talks

The price of gold is on the rise as it approaches $1,360 an ounce.

As I wrote last week the price movement higher is tied to the China tariff negotiations.

Look for further confirmation on the currency front with the US dollar index falling below 95 in the coming weeks. The days of King Dollar that Larry Kudlow use to speak about are waning since part of the Chinese talks revolve around setting up a basket of currencies and commodities to replace the dollar as the benchmark currency.

At the time I wrote the above gold was $1,340 an ounce. It then had a $26 pullback. So you can see the bias is to the upside.

Understanding that tariff talk is really a creation of a new paradigm for global trade based on something other than the greenback alone.

While bitcoin is a much different trading vehicle than gold it to is up bigly the last month or so. The digital currency has risen close to $4,000 over the last two months to trade around $8,800.

Understand that both assets have risen dramatically because I have used the dollar to price them. The weakening greenback makes the price rise more than against the yuan or euro.

So I leave it to you to keep an eye on these alternative investments as “tariff” talks continue.

Happy Father’s Day to all the dads out there.

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2 thoughts on “Gold moves higher on ‘China tariff’ talks

  1. Pingback: Gold, bitcoin soar past psychological milestones | Gray's Economy

  2. Pingback: The story of gold and bitcoin soaring | Gray's Economy

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