Gold Reversal
Gold was already strengthening and bond yields sinking on ISM data, then surged when Trump announced tariffs.
For the bond yield picture, please see Bond Yields Crash On ISM Report, More China Tariffs: Inversions Strengthen.
Soybeans down 14.75 is a definite "win" for Trump. What else could it possibly be?
Mike "Mish" Shedlock
A global manufacturing recession is now a certainty. Trump just made matters worse with a new 10% tariff hike on China.
As part of a trade deal, the US and China will both keep $50 billion in tariffs. Trump asked China to shift tariffs.
A recently retired reader friend is worried about, inflation, deflation, bonds, stocks, banks, and gold.
Trump says trade talks with China are on track for September. Tariff hikes are proof they aren't. Stocks reversed.
The long end of the yield curve continued its post-FOMC decline on poor manufacturing reports and new Trump tariffs.
In today’s FOMC Statement the Fed says the labor market has strengthened, household spending is growing strongly, and economic activity is expanding at a moderate rate.
Once again, the yield on the 30-year long bond is below 2.0%. I expect a record low yield shortly. Gold will benefit.
Trump claims he will use tariffs to pay down the national debt. Let's explore the idea with pictures.
The 30-year long bond yield crashed to a record low, gold jumped, and equities hammered as fears of a pandemic mount.
