Bull: Buy the dip. Central banks are buying Gold to diversify away from the dollar. Global tensions especially in Iran means Gold is a safe haven asset to buy and hold in tumultuous times.
Bear: Gold is a bubble. A Warsh led Fed will fight inflation with a stronger dollar & possibly lower interest rates. When the US dollar strengthens , Gold as an unyielding asset looks less attractive.
The Verdict: The current emotive market reaction is certainly bearish. Whether you should hold Gold or sell is a multi million dollar question.
The smart money is waiting for the dust to settle, watching if Warsh's historic hawkishness outweighs his recent dovish comments on interest rates.
In this volatile market, the only thing more volatile than Gold might be Trump's next word.
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- zumaΒ·10:58thx1Report