The tide is turning, and boy is it turning fast…Less than 24 hours ago, President Trump ordered cruise missile attacks on Syrian targets. This military action represents a major shift in policy for the administration, and it remains unclear just how much the situation could potentially escalate. The strikes are in response to the latest chemical weapons attack on innocent civilians, a cowardly, deplorable act that must be responded to and stopped.
On news of the strikes, the gold market popped while stocks sank and bonds and notes were bid higher. The risk aversion trade was clearly on for a while, although much of the risk premium in markets deflated as the session wore on.
This situation could potentially add to ongoing risk aversion, and could cause a significant strain on U.S. / Russian relations.
The gold market could see ongoing inflows, and if stocks really start to come under pressure, there could be a stampede into gold.
Gold may also potentially see increasing interest based on today’s jobs data and the potential for a more dovish Fed.
The U.S. Department of Labor and Statistics today reported the country added just 98,000 jobs last month. This figure was far below consensus estimates of 175,000 jobs. In fact, this reading could potentially suggest that the labor force is not as strong as it has seemed in recent months.
Today’s jobs data will make the April data released in early May even more important, and another weak number could potentially keep the Fed at bay.
The primary factors that have driven markets higher in recent months, including Trump’s healthcare plan, tax reforms and fiscal spending, have yet to be implemented.
The recent failure to repeal the Affordable Care Act, otherwise known as Obamacare, has seemingly caused more doubt about the administration’s ability to implement other key pieces of legislation.
Although this has not fueled a massive sell off in stocks just yet, such a sell off could be forthcoming if investors begin to lose patience.
All in all, it would seem that the gold market has gone from fighting an uphill battle to having significant tailwinds at its back.
Now may be the time to consider an allocation in physical gold if you don’t have one already. If you already own some physical gold, now may be a great time to add more.
Building a physical gold portfolio has never been easier than it is today. With stocks potentially on the verge of a major breakdown, and gold potentially on the verge of a major upside breakout, why wait?
Speak with an Advantage Gold account executive today about the potential benefits of gold ownership. Our associates can even show you how to buy and hold physical gold using your IRA account.
Don’t wait for stocks to collapse or for gold prices to move any higher before taking action. Call Advantage Gold at 1-800-341-8584 to explore your options today.
Tags: advantage gold, geopolitical relations, gold, healthcare plan, job report, risk premium, syria, tax reforms