The US government, from Biden to Trump, appears determined to escalate involvement in this conflict. However, as Rep. Thomas Massie noted, Red Sea shipping has minimal impact on the US economy.
Alarms are ringing everywhere for the economy. Not all of them are due to Donald Trump, though many are.
A bubble in gold? Hardly, as compared to the bubble in Monetary Base, which is a way of saying the bubble in monetary policy.
In such an environment, gold is the natural safe haven for countries to invest their trade surpluses, leading to much higher prices.
The pattern is one of a lower low, and a higher high. You can see how the market is running to the upside on this news.
As of date, spot gold will not fall below $2400 (in the next eighteen months, under the worst-case scenario) with infinity as the price target.
