GOLD – Terrorism Risk is Shockingly Absent from Analyses

The SPDR Gold Trust (NYSE: GLD) has reflected gold’s decline in the absence of Russia from the risk threat spectrum since Russia and Ukraine agreed to a ceasefire and plan toward peace. Given the removal of the Russian threat to the euro and potentially the dollar, which I’ve discussed in detail in the past, traders have had only interest rate expectations and dollar strengthening to look toward for guidance. It’s a serious weight against gold now, and should have investors divesting positions. As a result, the GLD security is declining precipitously. But where is terrorism risk assessment in our scenario analysis? Given the threats of the Islamic State and recent discoveries of plots in Australia and against the United Kingdom, shouldn’t we be thinking about this? See my full report on terrorism and gold here.