Golden Goose: Spiking Precious Metal Price Bolsters Trump Economy

Golden Goose: Spiking Precious Metal Price Bolsters Trump Economy

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By CCNGold prices have been relatively stagnant for some time, but a precious metals expert says this is about to change.

Martin Huxley, head of precious metals at INTL FCStone in Singapore, commented that uncertainty surrounding global finance, coupled with rising interest rates, has resulted in many countries’ central banks stocking up on gold. Among the major concerns leading to the purchases include the ongoing trade war between the United States and China, one in which China will likely lose.

Second Half of 2019 Will Be Good for Gold

For the most part, gold has retained a price range of between $1,217 and $1,330. At the time of writing, one ounce of gold is trading for about $1,286.

Stars Align for Gold

Huxley believes gold may jump in price by year-end 2019, stating:

“I think that we expect gold to continue to trade pretty much within this range for the coming months, but over the second half of the year, we expect it then to grind higher, and potentially it could test $1,400 towards the end of the year.”

The Federal Reserve has also hinted that banks and consumers won’t witness any further interest hikes in 2019, which also helped solidify gold’s “growth stance.”

Standard Chartered metals expert Suki Cooper agrees that gold could spike in price during the latter half of 2019, explaining last month:

“We expect gold to end the year on a strong note. It’s in the fourth quarter that we’ll see gold prices testing the highs that we saw in 2018 and 2017, and potentially matching the highs from five years ago.”

The Trump Effect

It can be argued that the rise of gold is in direct correlation with Donald Trump’s ongoing economic streak. Nations are concerned about the trade war, which was invoked by President Trump’s desire to take advantage of China’s slowing economy. Since last September, approximately $200 billion in new tariffs have been imposed on imported goods. This is now looking to bring about higher prices for one of the world’s (not just the country’s) most valued – and most stable – assets.

But the buck doesn’t stop there. At press time, the price of crude oil has risen by more than 1%. Oil has stayed strong since it was announced that the U.S. is now the No. 1 supplier of oil and gas reserves, having beaten both Saudi Arabia and Russia for the position.

Assets Are Rising Right and Left

Several stocks have also joined in on the hype. Shares of Johnson & Johnson and BlackRock have risen by roughly 2%-4% over the past day. Healthcare company UnitedHealth Group sawprofits spike by more than 20% during Q1 2019.

Bitcoin and other cryptocurrencies have also been on a bullish run since early April, with the BTC price spiking beyond the $5,000 mark roughly two weeks ago for the first time since November 2018.

Stock market rises have been recorded several times in both 2018 and 2019. The rise of gold, while special, can potentially be classified as just another mark on the president’s already growing contributions to the global economy.

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