We Said It Was Going to Be Wild.....
(Kitco News) - Last Friday we told our loyaland wonderful readers to buckle up and expect quite the ride this week -and boy was that the case.
The G7, the Federal Open Market Committee, ECB, Singapore, the WorldCup....(in no particular order) all delivering significant punches andfireworks.
From singer Robbie Williams flashing his middle finger on the global stageduring the World Cup opening ceremonies, to a week full of Trump’sTrumpisms including: calling Prime Minister Justin Trudeau “weak” and“dishonest”, to approving $50 billion of new tariffs on China, to blastingComey and his “minions” following the inspector general’s report, to hismuch talked about salute to the North Korean general.
And then we have the U.S. Federal Reserve taking its first step toward anearly exit from its balance sheet reduction. The central bank increased therates it pays on reserves by 0.2 percentage points Wednesday. This allcomes after it raised interest rates by 25 basis point and signaled twomore hikes later this year.
So what did this all mean for gold...just when it was shaping up to be anincredible week for the metal, hitting a 4-week high...a reversal of fateawaited.
As of newsletter time, gold prices sunk to a six-month low.Our senior analyst Jim Wyckoff summed up saying, “A slumping raw commoditysector in the face of a potential worldwide trade war among major globaleconomies has hit raw commodity prices hard today.”
A surging U.S. dollar index that hit an 11-monthhigh today is also working against the precious metals markets. August gold futures settled thesession and the week down $29.8 an ounce at $1,278.50, its lowest closingprice since late December.
But it was not all bad news... if you were following social media thisweek, a raccoon escaping sure death was making headlines. A daredevilraccoon became an internet sensation after it found itself stuck more than20 stories above the ground. But alas, the animal was safely recovered. Wecan all sleep well tonight.
Finally to all the incredible Dads out there, including my own (AlbertoCambone!!) ....Happy Father’s Day! Happy BBQing!
By Daniela CamboneFor Kitco News
Follow @DanielaCambone
dcambone@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.