Disputes between President Trump’s administration and Beijing have become a hallmark of his presidency but the latest salvo, fired off on Monday is one of the most stinging attacks yet and comes hot on the heels of a two-year trade war.
Speaking at the United Nations General Assembly, President Trump waved a red flag at China and demanded the UN take action against the nation, telling the General Assembly, “We must hold accountable the nation which unleashed this plague onto the world, China. The Chinese government, and the World Health Organization – which is virtually controlled by China – falsely declared that there was no evidence of human-to-human transmission.
“Later, they falsely said people without symptoms would not spread the disease … The United Nations must hold China accountable for their actions.”
China quickly accused President Trump of misuse of his UN platform to “provoke confrontation and create division”. We have seen over the last 18 months or so that any tensions between the two powerhouse nations weighs heavily on the markets and favours gold by the same amount. During the height of trade disagreements last summer, gold enjoyed a sustained bull run as jittery investors turned their attention to the safe haven amid market turmoil. With tensions already running high, this latest escalation is good news for gold, with history showing that price gains are likely already on the horizon. Buy now to benefit.