Why Gold's Counter-Intuitive Response to Brussels

Day Chart of Spot Gold at Kitco.com

Sure gold opened higher in New York after news of the terrorist attacks in Brussels, as there was concern there could be more to come. However, by the end of the day, gold had given back most of its gains. Why would gold behave in such a counter-intuitive manner to an event driving a clear flight to safety? It was because the terrorism happened overseas and not in America. The flight to safety should be to the #1 destination for foreign funds when there is trouble overseas, the good old USA. That result raised the dollar and in turn drove down gold traded in dollars. As tension and fear rises in Europe now, gold should give way in an even bigger way. See more on why gold reacted counterintuitively to the ISIS attacks in Brussels here.

Precious Metal Securities	03-22-16
SPDR S&P 500 (NYSE: SPY)	-0.1%
SPDR Gold Trust (NYSE: GLD)	+0.3%
iShares Gold Trust (NYSE: IAU)	+0.3%
iShares Silver Trust (NYSE: SLV)	+0.4%
Direxion Daily Gold Miners Bull 3X (NYSE: NUGT)	+0.2%
Direxion Daily Gold Miners Bearish 3X (NYSE: DUST)	-0.3%
Market Vectors Gold Miners (NYSE: GDX)	+0.1%
Market Vectors Junior Gold Miners (NYSE: GDXJ)	+0.8%
Goldcorp (NYSE: GG)	-1.2%
Newmont Mining (NYSE: NEM)	-1.4%
Randgold Resources (Nasdaq: GOLD)	+0.7%
Barrick Resources (NYSE: ABX)	-1.3%
Yamana Gold (NYSE: AUY)	+1.6%
Gold Fields Ltd. (NYSE: GFI)	+0.5%
Silver Wheaton (NYSE: SLW)	+0.5%
Coeur Mining (NYSE: CDE)	+0.7%

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only. Article should interest investors in precious metals stocks: Goldcorp (NYSE: GG), Agnico-Eagle Mines (NYSE: AEM), Allied Nevada Gold (AMEX: ANV), AngloGold Ashanti (NYSE: AU), AuRico Gold (NYSE: AUQ), Aurizon Mines (AMEX: AZK), Barrick Gold (NYSE: ABX), Brigus Gold (AMEX: BRD), Charles & Covard (Nasdaq: CTHR), Claude Resources (AMEX: CGR), Commerce Group (OTC: CGCO.PK), Compania Mina Buenaventura S.A. (NYSE: BVN), DRDGOLD (Nasdaq: DROOY), Eldorado Gold (NYSE: EGO), Entrée Gold (AMEX: EGI), Exeter Resource (AMEX: XRA), Gold Fields (NYSE: GFI), Gold Reserve (AMEX: GRZ), Gold Resource (Nasdaq: GORO), Golden Eagle Int’l (OTC: MYNG.PK), Golden Star Resources (AMEX: GSS), Great Basin Gold (AMEX: GBG), Harmony Gold (NYSE: HMY), IAMGOLD (NYSE: IAG), International Tower Hill Mines (AMEX: THM), Jaguar Mining (NYSE: JAG), Keegan Resources (AMEX: KGN), Kimber Resources (AMEX: KBX), Kingold Jewelry (Nasdaq: KGJI), Kinross Gold (NYSE: KGC), Midway Gold (AMEX: MDW), Minco Gold (AMEX: MGH), Nevsun Resources (AMEX: NSU), New Jersey Mining (OTC: NJMC.PK), Newmont Mining (NYSE: NEM), North Bay Resources (OTC: NBRI.OB), Northgate Minerals (AMEX: NXG), NovaGold Resources (AMEX: NG), Richmont Mines (AMEX: RIC), Royal Gold (Nasdaq: RGLD), Rubicon Minerals (AMEX: RBY), Seabridge Gold (AMEX: SA), Solitario Exploration and Royalty (AMEX: XPL), Tanzanian Royalty Exploration (AMEX: TRE), Thunder Mountain Gold (OTC: THMG.OB), U.S. Gold (NYSE: UXG), Vista Gold (AMEX: VGZ), Wits Basin Precious Metals (OTC: WITM.PK), Yamana Gold (NYSE: AUY), Coeur d’Alene Mines (NYSE: CDE), Endeavour Silver (NYSE: EXK), Hecla Mining (NYSE: HL), Mag Silver (AMEX: MVG), Mines Management (AMEX: MGN), Silver Standard Resources (Nasdaq: SSRI), Silver Wheaton (NYSE: SLW), SPDR Gold Trust (NYSEArca: GLD), Market Vectors Gold Miners ETF (NYSEArca: GDX), iShares Silver Trust (NYSEArca: SLV), ProShares Ultra Silver (NYSEArca: AGQ), ProShares Ultra Short Silver (NYSEArca: ZSL), Great Panther Silver (AMEX: GPL), Silvercorp Metals (NYSE: SVM), Paramount Gold and Silver (AMEX: PZG), Pan American Silver (Nasdaq: PAAS) and First Majestic Silver (NYSE: AG).