The markets were roiled today by comments from the Trump Administration. The first was that the weaker dollar is good for trade, which sent the US Dollar into a tailspin, falling down on the DX level to a new recent low of 89. And the second was some comments on the unfairness of trade with China, which fanned fresh concerns about a ‘hot trade war.’
The Donald will be addressing the World Economic Forum in Davos on Friday, and will be arriving there tomorrow.
Gold and silver were on a tear higher today as the US dollar was slumping. And stocks were wobbly, for the very good reason that they are overvalued, and that their underpinnings are weak to say the least.
Let’s see if the metals can hold their ground into the Comex Options expiration tomorrow, and if any fresh statements come out of Davos, that may shake up the calm of the financial markets.
