The conditions are prime for gold investment right now – which is great news if you wanted to buy before Christmas and set your portfolio up for 2020. A maelstrom of political and economic issues is swirling, causing markets elsewhere to feel more than a little subdued.
This has been an especially busy week thanks to the NATO summit in London – where President Trump said that he favours NOT signing a trade agreement with China until after the next presidential election in 2020. Next Sunday, the 15th of December, was expected to be the day when talks between the two sides resumed but this could now be a fruitless exercise. Yesterday (Thursday) Chinese officials indicated that they would impose their own additional tariffs on US goods if the US decides to bring additional sanctions to the table next week.
House Speaker Nancy Pelosi has also confirmed impeachment proceedings against Donald Trump will go ahead. While he’s dealing with that, the president and the broader market are also awaiting the year’s final employment report, which is a key lynchpin both politically and economically. An ADP national employment report for November was released on Wednesday this week and showed an increase of 67,000 which was far lower than had been expected. The Labor Department will release its own employment situation report later today (Friday) with the expectation that it will now be lower than thought.
All of this is weighing on the markets saw gold gaining in trading yesterday (Thursday). It also highlights the value of gold once again as a safe haven asset and the natural choice for the risk averse. Buy now to benefit.