If there’s one political situation that has been guaranteed to grab headlines week in week out this year, it’s been the US-China trade deal. While it looked like the two sides were heading for an agreement, this has now been scuppered by President Trump who has once again changed his tune on negotiations. Speaking in London this week, he said that the deal may not actually be made until after next year’s election. This is bad news for both economies of course, with the US and China each experiencing sluggish growth and many companies bemoaning the uncertainty.
For you as a gold investor however, this prolonged dispute is great news – with markets showing time and time again that the trade war is bad for business, gold is going from strength to strength. An even longer period of political sparring and trade tariffs is sure to hit traditional stocks and bonds hard and send many seeking lower risk, safe havens such as gold. Prices surged 1.1% just a few minutes after the president’s remarks yesterday, showing how positive this scenario is for gold. Buy now to eke the maximum benefit from the delay.