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Market Update,,, Gold

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Market Update

Friday November 11, 2016 10:59

(Kitco News) - Gold got slammed as a large commercial order of almost 8 metric tons was dumped on the market. The surging yield on the 10 year note continues to attract huge capital flows into the US$. The perception remains that the new administration will embark on a massive infra-structure spend and reduce corporate taxation. The budget deficit will likely double, unless you buy into the argument that the resulting benefit to the US economy will be so great, that additional growth will bring in huge tax dollars to offset the spend. Another issue, is higher rates will create an additional burden on debt payments for the Government. The path to a new great economy is by no means a given But for now, the prospect is enough to blow the cover off gold as a viable asset class. I for one have not started to drink the Kool- Aid.