By Sean Corrigan – Wealthy Nations (Hong Kong) –
Inevitably, the confrontational foreign policy which the new Trump regime has suddenly adopted toward both Russia (via Syria) and China (via North Korea) has started to fray a few nerves.
Gold, though still well in the middle of the range which has contained it ever since 2013’s crash, has risen to 4-month highs and T-bonds have rallied to their best level since the election.
Gold has, moreover, begun to edge up against commodities proper – versus copper, for instance – suggesting the economy’s Undertaker is starting to wrest the advantage from its Doctor.
Such angst is not yet apparent, however, in bond volatilities or in junk spreads – both measures which tend to function as canaries in coal mines.