The price of gold shot up $100 an ounce this morning at the same time that India launched a massive rocket barrage into Pakistan, targeting terrorist enclaves. Pakistan has threatened nuclear retaliation against an attack by India, and India was very careful not to attack anything military of Pakistan’s. At this point, Pakistan has no legitimate excuse to escalate this situation, that is the result of the murder of 25 citizens of India while in Kashmir, by Pakistani terrorists.
This has undoubtedly been instigated by China. The Chinese would love to see India and Pakistan in a full blown war, even a nuclear war, as China is in deep economic trouble while India is rapidly rising, and the two are bitter enemies with equally large populations.
The fact that gold shot up so much, so fast, is a good indicator that this conflict may grow. Especially if gold continues to rise. China has been buying up a lot of gold lately, in obvious preparation for the war they hope to cause and profit from. Let’s hope the rest of the world is on to them and steps back from this trap.