From : http://www.usagold.com/cpmforum/2017/08/09/the-daily-market-report-983/ By Peter Grant

 

 

                                                                                             

 

 

Gold extended to the upside, establishing a new 8-week high of 1276.30, within $20 of the 1296.06 high for the year from June. The yellow metal was boosted by safe-haven buying amid rising geopolitical tensions between the U.S. and North Korea.

 

After President Trump said yesterday that North Korean threats will be “met with fire and fury like the world has never seen,” the state-run news agency of the DPRK suggested that the military was considering a strike on the U.S. Air Force base on Guam. Secretary of State Rex Tillerson responded that U.S. Pacific Air Forces are “ready to fight tonight.”

 

That all constitutes a pretty stark escalation of the rhetoric from both sides within the past 24-hours. While hopes remain for a diplomatic solution, the potential reality that North Korea has miniaturized a nuclear weapon that could be delivered great distances with a missile, changes the geopolitical dynamic in the region and the world.

 

A misstep by either side at this point could prove catastrophic. Investors are being shaken from their recent complacency, prompting flows out of risk assets and into safe-havens like gold.

 

I’ve written a great deal lately about the frothy stock market, but I heard a great analogy recently that bears repeating: Barry James of James Advantage Fund likened the stock market to one of his favorite places, Yellowstone National Park. “It’s beautiful, but it has a volcano underneath it,” quipped James on CNBC.

 

A cataclysmic financial eruption may not happen today, and it may not happen tomorrow, but you certainly want to be prepared for that eventuality. The best protection you can get is physical gold.

 

 

http://www.usagold.com/cpmforum/2017/08/09/the-daily-market-report-983/