Growing confidence in gold as the US politics creates uncertainty

Growing confidence in gold as the US politics creates uncertainty

12.01.2017

The experts have analyzed the performance of gold prices after the USA presidential elections and have compared the results to what's happening right now in the gold market.

They have detected an important change among investors. Read on and get to know every detail.

It is time to face reality and invest in gold”

Garret Galland, author in ValueWalk

The fall of gold prices by the end of 2016 seems to have just been a glimpse of optimism about America's future. And the Fed's rise in interest rates in December just added fuel to the fire.

Once the presidential elections were over and the new economic measures for 2017 were announced, the economic picture in the USA started to improve. However, the global growth goes weaker and weaker. And this is likely to hinder the Fed's plans for 2017.

Markets have started to move according to what the United States President-elect has promised. On the other hand, the future monetary policy is already leading to uncertainty:

If we learned anything in 2016, it was that unconventional monetary policy alone cannot spur meaningful growth.”

Garret Galland, author in ValueWalk

Now that gold prices have increased, a loss of faith in the President-elect's future economic plans can be already noticed. And what does this mean? That gold has a lot of potential for investors to back themselves.

In 1912, J.P. Morgan proclaimed, Money is gold and nothing else. 104 years on, I would argue the reasons to own gold today are as strong as any time since.

Garret Galland, author in ValueWalk

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