Gold is powering higher on Thursday as a number of issues are giving the yellow metal a boost. With gold’s recent strong showing, it begs the question of whether or not the metal has finally found a significant bottom.
For the time being, it appears (in our opinion) that the answer to that question is a “yes.”
Since being hammered in the immediate aftermath of the November Trump Presidential election victory, the gold market has been trending higher, and in fact got off to a very solid start in the New Year.
Although gold saw a bit of a dip last week, the yellow metal is bouncing back this week and appears poised for further upside.
What’s driving the current upside being seen in gold?
While we believe there are numerous reasons for gold to be rising right now including a weakening dollar, a more dovish-sounding Fed and ongoing low rates and easing in other economies, the primary reason currently could be summed up in one word:
President Donald Trump has begun following through on some of his campaign promises, and investors may not be quite sure what to make of it.
Trump’s recent immigration ban sent shockwaves through the country, and drew commentary from several world leaders as well as many U.S. Government officials. This ban could potentially, however, be just the tip of the iceberg.
Trump also this week reportedly had a rough conversation with Australian Prime Minister Malcolm Turnbull regarding a refugee resettlement deal.
Trump is also having a challenging time getting some of his cabinet picks confirmed, and there is already some discussion in the media of a Trump impeachment or other ways in which he could potentially be removed from office.
The current concern over the new administration’s actions, while being highly praised by some, is not likely to abate any time soon. In fact, there is the potential for a lot more drama and with more drama and/or disagreement comes more uncertainty and with more uncertainty comes the potential for a stock market sell-off, risk aversion and other significant market upheaval.
The mounting discord in the U.S. and between the U.S. and other world leaders could potentially set the stage for much higher gold prices.
If you do not already have an allocation in physical gold, now may be the ideal time to get started. If you already own some physical gold, now may be an ideal time to add more.
And it’s never been easier to do so.
Speak with an Advantage Gold account executive today about the potential benefits of physical gold ownership. Our associates are here to answer your questions, and can even show you how to buy and hold physical gold using your IRA account.
Don’t wait for risk aversion to fuel a stock market collapse or for gold prices to increase from current levels. Explore your options for physical gold ownership now. Call Advantage Gold at 1-800-341-8584 to get started today.Tags: advantage gold, cabinet, dollar decline, gold, trade war, trump, uncertainty