The gold market had a lackluster day overall. Prices were slightly higher in early afternoon trade as the bulls attempted to fight off numerous, bearish inputs that included stronger stocks, hopes for a U.S./China trade deal and more.
The fact that gold did not, however, see any significant declines could be viewed as yet another important sign of strength.
With stocks making a fresh all-time high today, selling was lackluster in the yellow metal. Stock investors appeared to be cheering on hopes for an initial deal on global trade, while markets were also taking in the latest jobs data from Friday that suggested that a recession may not be as close as many have feared. Despite these two key updates, the gold bulls held strong and did not give up a bunch of ground. This lack of selling in gold, despite some of the day’s bullish factors, could be viewed as a symptom of underlying market strength.
The market was not even phased by a stronger dollar today.
Of course, there could be several reasons for the lack of selling in gold today. At the heart of the matter, however, is the bullish fundamental picture that has been laid out for the gold bulls. Whether or not a deal between the U.S. and China is finally reached, it could be just the beginning stages of a long and protracted bear market on global trade as protectionism rises further. And just because a current deal is reached does not mean that other issues won’t come up that could bar trade between the globe’s first and second-largest economies again. In other words, a deal may ignite some bullish spirits in stocks, but it may also prove to be nothing more than temporary in nature.
Just because there was no inflection point today in the global economy does not mean that things will stay that way, either. The gold bulls could simply be gearing up for the next major economic or geopolitical event that could potentially send stocks reeling while pushing gold or alternative asset classes sharply higher.
The world is a messy place, and as messy places often see, the next major spill could be right around the corner.
That makes now, right now the ideal time to build a significant allocation in alternative asset classes that may potentially outperform when the next major crisis hits. If you are considering such a move, you may potentially find that there is simply no better asset class to turn to than physical gold.
Gold not only comes with significant, unlimited upside price potential, but it may potentially also provide provide other benefits as well. The yellow metal is widely regarded as an effective hedge against accelerating inflationary pressures, and it could also protect against a sharply weaker dollar or paper currency values. Not only that, but there may be another asset class that has the history and reliability that gold has become known for.
Adding this key asset class to your holdings has never been easier, and perhaps never more important than it is today. Simply pick up the phone and speak with an Advantage Gold account executive today. Our specialists will show you how to buy and store physical gold and can even show you how to build a significant allocation using an IRA account. We are also here to answer any questions you may have along the way.
Don’t wait for the next major stock market collapse or for gold to move sharply higher without you before acting. Explore your options for gold ownership today. Call Advantage Gold today at 1-800-341-8584 to get started now.Tags: alternative asset, china, global trade, gold bulls, physical gold, protectionism, trade deal