August 3, 2025 - (Gold Market Wire) - No sooner do we call time on the last 18-months of Gold's rally, than geo-politics kicks in and reverses the market 180 degrees... on a dime.

President Trump has decided to move two US Ohio-Class nuclear armed submarines "closer to Russia" after Russian Security Council Deputy and former President Dmitri Medvedev warned Trump that "Russia is not Israel or even Iran...each new ultimatum is a threat and a step towards war."

The chart shows the reaction:

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The weekly chart shows how seriously we were flirting with a sell-off.

In the search for what makes this form of no-interest money move, a whole library has been filled. But confidence and existential security always come out top of the list. That means War, as a consideration, predominates. That is why Gold keeps roaring ahead of Silver on the ratio.

As of the Friday close, Trump's statements, combined with top US Military Bass talking about how easily they could take Kaliningrad from Russia, shows how the road to war keeps escalating. Under such a scenario, Gold has nowhere to go but up.

The geo-political situation continues to deteriorate.