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The precious metal being firmly supported by “a multitude of bullish tailwinds” including President Trump’s tariff’s, which threatens to ignite a new era of trade wars and global uncertainty. Last Wednesday, Trump hot-listed Europe as his next target – announcing plans to impose 25% tariffs on imports from the European Union.
As President Trump’s erratic foreign policies stir up a new wave of inflationary pressures – concerns of stagflation have re-emerged as a real possibility on rising expectations that Trump’s “America-first” policies will hurt the global economy and limit central bankers’ ability to manoeuvre.
Another major catalyst is Central Banks around the world continuing to accumulate Gold at a record-setting pace as they aggressively diversify away from the US dollar.
And it’s not just Central Banks. Right now, the world is experiencing a run on physical Gold like nothing we have ever seen before.
Interestingly, the U.S is leading the pack and gobbling up vast quantities of available Gold internationally, which could ultimately lead to a shortage and drive up prices.
Since President Trump’s inauguration, traders and financial institutions have been amassing stockpiles of Gold on COMEX – The New York Commodity Exchange. In return, America’s “New Gold Rush” has drained commercial vaults in London, Switzerland and Singapore.
And last but definitely not least – the De-globalization Movement, which is officially entered a new phase on expectations of incoming Trade Wars, Tit-For-Tat Tariffs and Protectionist Policies – forcing countries across the world to prioritize their national interest over the global good.
To quote analysts at GSC Commodity Intelligence – “this is perhaps one of the most inflationary factors of all that is guaranteed to keep Gold demand elevated and drive prices a lot higher from current levels”.
Whichever way you look at it, one thing is clear. The case for precious metals in a well-diversified portfolio has never been more obvious than it is right now. Any substantial pullbacks should be viewed as buying opportunities because prices won’t stay low for long!
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