RE:RE:RE:RE:RE:RE:ROXG reports Tuesday August 14Interesting analysis, Some additional points for consideration, the current uncertainty caused by the trade wars seems to have made the USD relatively attractive. The tariffs will add to inflation in USA and this may persuade the Fed to raise interest rates which will further strengthen USD. A strong USD has always been a negative for Gold.
The timing is significant because higher USD will reduce exports, bad for trade balance; higher cost will see some lay-offs and reduction in GDP which should hit in Q3. ( the boost in Q2 was in part caused by folks trying to get ahead of the tariffs) and all of this could have a negative impact on the potential for Republicans at the polls. Lower GDP and increase in unemployment may persuade Fed to hold off on interest rate rise.
My bottom line is that Gold will not start to recover until late November, in the meantime I will continue to pick up producers on the cheap and ROXG is on the list. Cheers