Gold last traded at $1,336 an ounce. Silver at $16.34 an ounce.
NEWS SUMMARY: Precious metal prices rose Friday as trade war fears weakened the dollar. U.S. stocks fell sharply as worries of a trade war between the U.S. and China grew.
Gold swings higher as U.S. payrolls data miss forecasts –Reuters
“Gold rose on Friday after weaker than forecast U.S. payrolls data knocked the dollar lower and as concerns over the prospect of a U.S.-China trade war kept the metal on track for a narrow weekly gain. The U.S. currency fell versus the euro and Wall Street stock futures added to losses after the report showed that the U.S. economy created the fewest jobs in six months in March, easing concerns over aggressive interest rates hikes….U.S. President Donald Trump said late on Thursday that he had instructed U.S. trade officials to consider $100 billion in additional tariffs on China, fueling an already heated dispute between the world’s two biggest economies.”
The Next Crisis Will Be The Last –Roberts/Real Investment Advice
“Throughout the last four decades there is a direct link between the actions of the Federal Reserve and the eventual economic and market outcomes due to changes in monetary policy. In every case, that outcome has been negative….For the Federal Reserve, the next ‘financial crisis’ is already in the works. All it takes now is a significant decline in asset prices to spark a cascade of events that even monetary interventions may be unable to stem. As stock prices decline: Consumer confidence falls further eroding economic growth. The $4 Trillion pension problem is rapidly exposed which will require significant government bailouts. When prices decline enough, the record levels of margin debt are triggered which creates a liquidation cascade. As prices fall, investors and consumers both contract further pushing the economy further into recession. Aging baby-boomers, which are vastly under-saved will become primarily dependent on social welfare which erodes long-term economic growth rates. With the Fed tightening monetary policy, and an errant Administration fighting a battle it can’t win, the timing of the next recession has likely been advanced by several months….At some point, there will be a realization of the real crisis….The issue for future politicians won’t be the ‘breadlines’ of the 30’s, but rather the number of individuals collecting benefit checks and the dilemma of how to pay for it all. The good news, if you want to call it that, is that the next ‘crisis,’ will be the ‘great reset’ which will also make it the ‘last crisis.'”