| I’m still in recovery mode from this year’s blockbuster New Orleans Conference, which culminated the weekend before last.
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| It was a rollicking celebration and value-packed four days, filled with scintillating presentations and panels and crackling with intellectual energy that left everyone energized and excited for the days ahead.
In regard to gold, even these experts were unwilling to predict the short term.
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| But they were in agreement on the exceptionally bright long-term picture for the yellow metal...and what I called a “generational opportunity” in junior mining stocks.
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| In the days ahead, we’ll explore some of what these insightful voices shared with our attendees...as well as an opportunity for you to get video recordings of all the exceptional presentations along with a written transcript of the proceedings.
In the meantime, that confusing short-term picture for gold just got more complicated....
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| One of the key points that I made during the conference was that the eagerly awaited arrival of the Western investors to the gold bull market had occurred...but that we should’ve been careful what we wished for.
Because those Western investors are much more speculative and trading oriented, as opposed to the Chinese investors and, certainly, the central banks that had launched the bull run with their buying.
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| So the Western speculators would bring a lot more wiggles to the uptrend line.
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| That they have, as opportunistic (some would say “manipulative”) traders on the futures and options markets have orchestrated periodic bear raids on gold and silver.
The latest of these came with the supposed breakout of peace in the MidEast, with traders preying on the view that there was a geopolitical premium in the gold price, as opposed to the more fundamental drivers of debt-service worries and de-dollerization.
Most recently, these speculators used the headline of a cease fire deal between Israel and Hezbollah as an excuse to send the gold price plummeting as much as $40 in thin Sunday-night overseas trading.
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| However, as you can also see from the chart above, those losses have mostly been clawed back in today’s trading, with gold down only about $7.00 as I write.
The reason: Newly-elected President Trump’s promise over the weekend to levy 100% tariffs on any nation trying to subvert the U.S. dollar’s dominance.
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| As I mentioned, this bull market was spawned by massive central bank gold buying to avoid the very dollar hegemony that Trump is referring to.
While I have consistently expressed my doubt that the BRICS movement will successfully eliminate the greenback’s dominance in any time frame that is relevant to today’s investors, I have recognized that there is a powerful trend among nations to gain some level of protection through expansion of their gold reserves.
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| Trump’s announcement promises to accelerate central bank gold buying in the weeks ahead.
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| The overnight raid on gold, premised on peace breaking out in the MidEast, ran smack-dab into this major development. Thus, the gold price has recovered a good bit.
Recognizing that the short term is most unpredictable for gold, I believe gold will continue to rally from here.
We’ll see. In the meantime, stay tuned for more coverage from this year’s blockbuster New Orleans Conference...including a special announcement on Wednesday.
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| Brien Lundin
Publisher, Gold Newsletter
CEO, the New Orleans Investment Conference
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| CLICK HERE to watch interviews by Brien Lundin and Kai Hoffmann with many of today's most exciting junior mining companies on the
Gold Newsletter Youtube channel.
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