Gold jumps in Asia on Hong Kong concerns, Argentina default threat
Gold jumps in Asia on Hong Kong concerns, Argentina default threat by Michael J. Kosares for USA Gold
(USAGOLD – 8/13/2019) – After pushing again over the $1500 mark to begin the week, gold gathered pace in Asia overnight reaching a high of $1533. It is now trading at $1522 in early U.S. trading – up $10 on the day. Silver is up sharply at $17.37 – a 27¢ gain. At the current price, gold is up about $26 (or +1.7%) from Friday’s close. Silver is up 50¢ (or +3%). Escalating street violence and the threat of military intervention in Hong Kong were primary influences in last night’s price action. A new political and economic crisis in Argentina suddenly resurrected the threat of default and added to financial markets’ general unease.
In a report featured at Zero Hedge this morning, Morgan Stanley’s chief equity strategist, Michael Wilson, identifies that general unease as part of larger erosion in market sentiment. “[L]ate 2017/early 2018 was the euphoric top for this cycle and do not expect…individual investor sentiment to return to euphoric levels for a sustained period of time before the end of this cycle.” He concludes that “this trend is consistent with the persistently negative sentiment seen during the bear markets of 2008-2009 and 2015-2016 and helps to reinforce our view that we have been in a rolling bear market since early 2018.”