It’s a complex world out there. A variety of asset classes, policy points, data metrics, etc. all have a big effect on each other. Sometimes that happens in weird and unexpected ways. Who would have thought that interest rate spreads would have a bigger effect on stock market volatility than policy points in Washington? And that’s just one example.
In another instance of uncertainty, gold began a rally when Treasury Secretary Steven Mnuchin talked about trade and gave his opinion on the U.S. dollar.
It turns out that Mnuchin’s comments on trade, the dollar and gold are very much interconnected. And if the Treasury Secretary’s comments continue to hold, investors in the precious metal would be glittering indeed.