News Story of the Day: Gold futures have topped $1,400, closing at their best levels since 2013. The yellow recorded a 4.25 percent gain this week and is up more than nine percent.
MarketWatch explains:
On the macroeconomic level, there’s “the combination of increase geopolitical tensions and a more accommodative monetary policy stance signaled by central banks, including the [European Central Bank] and the [U.S. Federal Reserve], which have pushed global interest rates lower,” he said.
U.S.-China tensions over trade policy persist as traders await an expected meeting and progress toward a resolution on the trade dispute, between U.S. President Donald Trump and Chinese President Xi Jinping at the Group of 20 leaders summit on June 28-29.
Meanwhile, Trump said Friday that he was prepared to conduct airstrikes against Iranian targets in retaliation for Iran’s move to shoot down a U.S. drone, but called off the strikes.
“Further tensions in the Middle East could bid gold prices higher through haven demand in the short term,” said Maxwell Gold, director of investment strategy at Aberdeen Standard Investments, though “key factors in control of gold right now are rates and recession fears.”
Potential headwinds for gold would include any “hawkish signaling by the Fed or an immediate resolution to the trade war between the U.S. and China,” which would likely contribute to strength in the dollar, Gold said.
Chart of the Day: Vox actually has good content for once: A chart that looks at the revolving door between Capitol Hill and lobbying firms.
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Illustration of the Day: It’s safe to say that many conservatives and leftists – if Trump says he doesn’t want war with Iran – are itching for combat in Tehran. Of course, they won’t volunteer or send their own kids to die in another senseless war. This meme has it right.
Quote of the Day: Jeff Deist, president of the Mises Institute, is out with a great new piece, titled “Austrian Economics is No Longer the Unheard Music”:
Here is the final powerful paragraph:
“Nobody wants, or hopes for, a severe economic contraction. Nobody wants to see people suffer from bad political and economic policies. But debt and entitlements are unsustainable. The Fed’s swollen balance sheet in unsustainable. Moving toward socialism is unsustainable. Austrians will be vindicated, but will they be heard?”
Tweet of the Day: Is there any other president in United States history who better trolls the press than Donald Trump? Check this tweet out that is perturbing the mainstream media.
— Donald J. Trump (@realDonaldTrump) June 21, 2019
Video of the Day: He might be terrible on economics, but Tucker Carlson is the best on cable news when it comes to foreign policy. Here is a perfect example:
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