Politics of gold price14 May 2025 17:03
The general consensus, lets face it the gold price recently rocketing has been solely responsible for recent speculation in gold shares, has changed dramatically following the Chine about turn.
Recent commentary was ' Monday's "ceasefire" in the US-China trade war "eased uncertainty and reduced risk aversion in financial markets, so the attractiveness of gold as a safe-haven asset has declined,'
Quite frankly I do not believe this consensus of 'ah well its all over now bar the shouting and we can get back to pre-Trump times' is a serious misjudgment of where we are today and in the future. This isn't over by any measure and the Chinese consumer and exporters' confidence (in particular) has been severely shaken by the pantomime villain Trump and the ordinary Jo's appetite for gold will increase not decrease. There is no certainty about anything around the world any more because no-one knows what the hell Trump will do next. As long as Trump continues as President (is that certain?) global concerns will continue and gold WILL be the hedge against uncertainty, not just inflation for the forseeable future. Just my opinion. .