(Kitco News) - Gold has not been acting like a proper safe haven due to the fact that a full-blown trade war has not yet been triggered, but this may change once tariffs are implemented, said Gary Wagner, editor of theGoldForecast.com.
"We are in a trade dispute, we haven't morphed into a full-blown trade war. Once tariffs are actually imposed, that will be a different story, and we might see some fireworks at that point," Wagner told Kitco News.
Wagner noted that should gold fall below $1,240 an ounce, a level $30 lower should be expected.
On silver, Wagner said that the white metal did not fall as far as it could when compared to gold's drop to December and January lows.
"Silver has really been caught up in a sideways channel and now it's moved back to the lower end of that channel, so it's got to break out of that channel before I can really get excited about silver," he said.
Wagner added that he would prefer gold over silver at his time due to gold's potential to react as a safe haven asset.
This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.