Stephen Innes
SPI Asset Management
Gold is moving higher as strategic hedging regimes kicked in ahead of a possible equity market rout, which is breathing new life into gold markets as prices look to primed to move higher.
The uptick in geopolitical risks is the primary catalyst due to renewed US-Sino tension after the White House put China in the crosshairs. On Friday, after a White House press conference, President Trump said that he had a high degree of confidence that the Covid-19 pandemic originated in a laboratory in Wuhan, while simultaneously threatening sweeping tariff retaliation towards China.
The renewed focus on China has prompted a flurry of press articles about possible economic retaliation by the US, but all roads lead back to trade tariffs.
Gold is highly sensitive to geopolitical events, especially as it relates to trade risks which bolstered gold throughout much of 2019 when bullion prices soared 18%.
SPI Asset Management provides forex, commodities, and global indices analysis, in a timely and accurate fashion on major economic trends, technical analysis, and worldwide events that impact different asset classes and investors.
Our publications are for general information purposes only. It is not investment advice or a solicitation to buy or sell securities.
Opinions are the authors — not necessarily SPI Asset Management its officers or directors. Leveraged trading is high risk and not suitable for all. Losses can exceed investments.
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