James Brodie
Head of Learning & Development, Flux
Druckenmiller on Bessent, Gold Rally, Trump Escalates Canadian Trade War
Gold surges as China demand, Newmont soars 45%; Trump doubles Canada tariffs while Druckenmiller flags 30Y yield as fiscal check.
Druckenmiller on Bessent's ‘actions’: "I have spent five decades trading on a simple premise: Markets aggregate information no committee possesses, and prices are how that information reaches decision makers.
The long-term Treasury yield is the most important price in the world. It is also the only fiscal disciplinarian the U.S. has left."
"If the 30-year must trade at 5.5% to clear, that isn’t a crisis. It is an invoice. Then do the only thing that durably lowers long-term yields: address the primary deficit."
Gold rallies another 1%. Chinese gold demand is surging back, with open interest in Shanghai Futures Exchange gold futures spiking to nearly 400,000 lots - one of the largest two-day increases in five years - suggesting aggressive new long positioning rather than simply rolling existing contracts. (Goldman Sachs)
Shares of Newmont, the world’s largest gold producer, are up 45% in just four weeks - one of the biggest rallies in the company’s history.
The Bloomberg Commodity Index has SURGED by a STAGGERING 38% over the past year.
Trump has escalated the U.S.-Canada trade war by threatening to double auto tariffs to 50% and impose new parts tariffs from January, following a breakdown in negotiations that already triggered a 50% levy on Canadian furniture, plastics and electrical equipment - with Canada vowing retaliation, the Canadian dollar sliding, and economists estimating up to 90,000 Canadian jobs at risk if the measures persist.
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