Global Collapse In Trust Is Driving A Secret Bull Market In Gold

Global Collapse In Trust Is Driving A Secret Bull Market In Gold from Gold Core

Gold has gained in dollars this week and also rose in other currencies (see LBMA prices below) due to concerns about the slowing U.S., UK, EU and Chinese economies and indeed the global economy.

Gold prices consolidated on this week’s 2.2% rise today and are headed for their best week this year.

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Today’s U.S. non-farm payrolls confirms that the U.S. economy is weakening. There may the usual price volatility and manipulation after the number but investors should fade that noise and focus on gold’s increasingly evident, positive, long term fundamentals.

The U.S. and other debt saturated economies were already vulnerable towards the end of this economic cycle. The very real trade war risk is impacting already fragile consumer and business confidence. It is only a matter of time before this takes its toll on still frothy risk assets.

Expectations of a much more dovish Fed and the escalation in global trade conflicts should see gold continue to outperform as it remains very undervalued compared to U.S. stocks and other assets.

Spot gold was flat at $1,333.90 per ounce and it’s 2.2% gain so far this week and is set to be its best weekly percentage gain since late-March. Gold has risen by $60 an ounce after Washington’s threat of tariffs on Mexico, while recent very poor economic data has increased the likelihood of interest rate cuts in the U.S. and in other major economies.

Trump’s threat to hit China with tariffs on at least $300 billion in Chinese goods after a meeting of leaders of the world’s largest economies at the G20 later this month will keep markets on tenterhooks and should see gold eke out more gains in the coming months.

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Mark O'Byrne

I founded GoldCore more than 10 years ago and it has been my passion and a huge part of my life ever since. I strongly believe that due to the significant macroeconomic and geopolitical risks of today, saving and investing a portion of one’s wealth in gold bullion is prudent. I have been an Executive Director in GoldCore since its foundation and today I am Marketing and Research Director. As our customer base grew both domestically and internationally we were receiving a steady stream of requests from our clients and wider public for detailed analysis of the precious metals market. To meet this demand, I stepped into the Research Director’s role and am responsible for helping to inform and educate our clients and followers on how to protect and grow their wealth through owning gold and silver bullion.