Gold was marginally down yesterday (Tuesday) thanks to a small uptick in positive sentiment on Wall Street – making now a great time to act before the weekend. With some economies in Europe making moves to open back up again (restrictions are being relaxed in places like Spain, Italy and Germany) and Donald Trump pushing for Americans to get back to work, the markets have started to feel a glimmer of hope for the first time in what feels like months.
Crude oil has continued its recovery after falling into negative territory a few weeks ago, again fuelling more positive sentiment. Markets in the US traded up yesterday (Tuesday) with news the dollar is also recovering strength.
You would be wise to take advantage of this opportunity to buy now as there are strong indications that declining US-China relations could soon reach new lows, with some talking of a new ‘cold war’. Both Donald Trump and US Secretary of State Mike Pompeo have declared they have seen ‘strong evidence’ that COVID-19 was created in a lab in Wuhan, the epicentre of the outbreak despite the fact US intelligence agencies have not reached that conclusion.
The UK and Australia both believe that the virus was passed from animals with no evidence to suggest it emerged from a lab. China has reacted angrily to the US accusations, leading many to wonder if tensions will ratchet up even higher than those witnessed during the recent trade war. If that’s the case, expect gold to shine.