– As emerging market currencies internationally collapse in value, there is a real risk of contagion in bond and currency markets

– Turkish lira falls 43.6% and Argentine peso falls 51% and are respectively the 2nd worst and worst internationally traded and non pegged performing currencies in 2018

– Venezuelan bolivar has completely collapsed

– Inflation is going to take off as wheat has surged 28% and oil is up 16% year to date in dollar terms

– Are Argentina, Turkey, South Africa, Indonesia and other emerging markets exceptions? Economists think so but contagion could spread rapidly

– Emerging-market crisis is driving safe-haven demand for German Bunds and soon gold

– Important not to think of gold solely in US dollar terms and realise that gold is again acting as a safe haven for those who need a currency hedge

Argentina

 

ArgentineSource: Goldprice.org

 

oilMarket Performance YTD in USD (Finviz.com)

News and Commentary

Gold nudges up as dollar eases; Sino-U.S. trade tensions in focus (CNBC.com)

Mighty Dollar and Trade Fears Drag Silver Down to Two-Year Low (Bloomberg.com)

Gold near 1-wk lows as trade, emerging market concerns boost dollar (Reuters.com)

Bullard says Fed should hold off on raising rates (MarketWatch.com)

EU Looking to Sidestep U.S. Sanctions With Payments System Plan (Bloomberg.com)

South Africa

Source: Bloomberg.com