Gold News

Dow 30,000

Gold gets ready for Barron's big trump dump...

BLAME Trump's travel ban shenanigans, writes Greg Guenthner in Addison Wiggin's Daily Reckoning.

Blame the market gods.

Or those damn algos...

But we know the real culprit behind last week's market slide:

*Sigh* here we go again...

We would accuse President Obama of having a hand in this mess. But he left for vacation more than a week ago. So we're going to have to instead chastise the financial press for this epic market jinx...

Thanks a lot, Barron's.

Just weeks removed from the financial mag's Dow 20,000 cover and we're graced with this doozy.

Granted, if you were to read the smaller text, you'd notice that Barron's isn't calling for Dow 30,000 by the end of the year – or even the end of the decade. No, the prognosticators at Barron's see the Big Board topping 30K by...2025.

Of course, we aren't a nation that bothers with the fine print. I seriously doubt anyone even read the article. A gaudy number in bold font is all we need to make it through the day...

Trump's not sweating the details, either. He doesn't seem to mind that investors are nervously selling stocks to start the week on the heels of his grab-bag of executive orders hitting the wire.

Yet every market watcher on the planet believes the Trump rally is finished. Now's the time to watch for the Trump Dump, they say.

There's one asset that's enjoying this: Gold.

Gold just posted its strongest month since the Brexit vote in June. After mid-January's brief pullback, the Midas metal is off to the races again this morning.

"The gold market is in thrall to the Donald Trump show," David Govett, head of precious metals trading at Marex Spectron, tells Bloomberg. "If Trump sticks to his immigration policy of the last few days, then gold should remain supported."

We've closely tracked gold's attempt to carve out a bottom since December. Last month, gold wandered lower, eventually cracking below $1130 just before the Christmas break.

That's when things got interesting...

After briefly visiting 11-month lows, gold has started to quietly bottom out. Its spot price has risen back in the neighborhood of its 2-month highs. Now we have a situation where gold is firming and the Dollar is losing steam...

Of course, it's important to remember that the precious metal plays we're tracking right now have endured some serious pain over the past six months. I can't promise you that the lows are in. But Trump is doing everything he can to spook investors right now.

Gold loves investor anxiety. So it's entirely possible that the constructive action we've noticed in gold and other precious metals is the beginning of another leg higher.

Publisher of Agora Financial, Addison Wiggin is also editorial director of The Daily Reckoning. He is the author, with Bill Bonner, of the international bestsellers Financial Reckoning Day and Empire of Debt, and best-selling author of The Demise of the Dollar.

Addison Wiggin articles

Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News.

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