• Gold breaks the November high

Geopolitical uncertainty is fuelling a fresh record high in gold. It’s up $34 today to $2791, breaking the November high by $1.

At the start of December I mentioned the seasonal trend of strength in gold in Dec-Jan (as I always do). Once again this year it delivered:

Technically, it’s just psychological levels here with $2800 offering some resistance but $3000 as the big target.

I suspect we could get a rapid move higher on a trade war but I don’t see that happening. Another possible catalyst is a sign from congress about fiscal excess. I just don’t see how the math works on lowering corporate taxes to 15% from 21% as there is no level of tariffs that will raise that kind of money and the US is already running deficits at 7% of GDP.