Gold Prices Jump on U.S.-China Tensions, Loose Monetary Policy

Gold Prices Jump on U.S.-China Tensions, Loose Monetary Policy by  for ETF Trends

Gold prices fueled by Covid-19 uncertainty could give way to geopolitical uncertainty and central bank policy. U.S.-China relations are once again on the rocks while global interest rates remain low, which could both fuel more gold price increases.

“Nobody is talking about this yet but gold is definitely getting a boost from renewed geopolitical uncertainty,” said Phillip Streible, market strategist at Blue Line Futures, via a Kitco News article.

“I think at this point in time the market is likely to continue to see a lot of volatility, but I still believe in the uptrend due to the fact that Jerome Powell almost certainly do whatever it takes to keep the markets relatively loose,” wrote Christopher Lewis in FX Empire. “As long as that is the case, the US dollar will continue to lose value, and thereby people will continue to drive into the precious metals markets. Gold of course is the first place people go to, so it does make quite a bit of sense that we continue to find plenty of opportunities going forward.”

Gold Price in US Dollars Chart

Gold Price in US Dollars data by YCharts

Traders who are sensing an opportunity can play movements in gold via miners using the following funds:

  • VanEck Vectors Gold Miners (NYSEArca: GDX): seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the NYSE® Arca Gold Miners Index®. The index is a modified market-capitalization weighted index primarily comprised of publicly traded companies involved in the mining for gold and silver.

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The Daily Coin

Rory Hall, The Daily Coin and Gospel News Network. Beginning in 1987 Rory has written over 1,400 articles and produced more than 500 videos on topics ranging from the precious metals market, economic and monetary policies, preparedness as well as geopolitical events. His articles have been published by Zerohedge, SHTFPlan, Sprott Money, GoldSilver, Gold Seek, SGTReport, and a great many more. Rory was a producer and daily contributor at SGTReport between 2012 and 2014. He has interviewed experts such as Dr. Paul Craig Roberts, Dr. Marc Faber, Eric Sprott, Dr. Warren Coates and Peter Schiff, to name but a few. Don't forget to visit The Daily Coin and Gospel News Network to enjoy some of the best economic, precious metals, geopolitical and preparedness news from around the world.