Gold will surge to the highest level in five years if a global trade war breaks out, according to Sprott US Holdings chief executive Rick Rule, who's been involved in the market for four decades (reports Bloomberg).
Key monetary indicators in the US, Europe, Japan, and China are flashing signals of an economic slowdown later this year, raising fears of a global recession in 2019 and a stock market slump without a shift in policy (reports Ambrose Evans-Pritchard in London’s Daily Telegraph).
Shares in Liontown Resources rose after the company reported another strong round of assay results from its emerging lithium discovery at the Buldania project in Western Australia (reports MiningNews).
Some of the world’s biggest mining companies are set to open negotiations with the Democratic Republic of Congo over a new mining code that could impose tough new conditions and higher royalties on the metals they produce (reports London’s Daily Telegraph).
The US and South Korea agreed to amend their free-trade deal to address American concerns about a growing deficit and resolve friction over tariffs on South Korean steel, Seoul’s trade ministry said in a statement (reports the Wall Street Journal).
The changes to the deal, which have been blamed by President Donald Trump for expanding the U.S. trade deficit, focus on rebalancing trade in the auto sector—a major source of South Korea’s trade surplus with the U.S., the ministry statement said.
Investors have soured on silver to start 2018, after prices rose over the last two years—a possible warning signal to the broader market (reports The Wall Street Journal).
Silver futures have fallen 3.1% this year, trailing a 3.3% gain in gold. That’s after bullion rose 14% last year, double silver’s 7% advance.
The divergence between the two means prices for gold are 82 times those of silver, which is 27% more than the 10-year average and the highest level in two years, data analyzed by WSJ Market Data Group show.