Global Collapse In Trust Is Driving A Secret Bull Market In Gold

June 7, 2019
Executive & Research Director @ GoldCore

Gold has gained in dollars this week and also rose in other currencies (see LBMA prices below) due to concerns about the slowing U.S., UK, EU and Chinese economies and indeed the global economy.

Gold prices consolidated on this week’s 2.2% rise today and are headed for their best week this year.

Today’s U.S. non-farm payrolls confirms that the U.S. economy is weakening. There may the usual price volatility and manipulation after the number but investors should fade that noise and focus on gold’s increasingly evident, positive, long term fundamentals.

The U.S. and other debt saturated economies were already vulnerable towards the end of this economic cycle. The very real trade war risk is impacting already fragile consumer and business confidence. It is only a matter of time before this takes its toll on still frothy risk assets.

Expectations of a much more dovish Fed and the escalation in global trade conflicts should see gold continue to outperform as it remains very undervalued compared to U.S. stocks and other assets.

Spot gold was flat at $1,333.90 per ounce and it’s 2.2% gain so far this week and is set to be its best weekly percentage gain since late-March. Gold has risen by $60 an ounce after Washington’s threat of tariffs on Mexico, while recent very poor economic data has increased the likelihood of interest rate cuts in the U.S. and in other major economies.

Trump’s threat to hit China with tariffs on at least $300 billion in Chinese goods after a meeting of leaders of the world’s largest economies at the G20 later this month will keep markets on tenterhooks and should see gold eke out more gains in the coming months.

LBMA Gold Prices (USD, GBP & EUR – AM/ PM Fix)
06-Jun-19 1336.65 1335.50, 1053.15 1051.17 & 1189.62 1185.92
05-Jun-19 1337.75 1335.05, 1052.01 1049.22 & 1185.38 1184.99
04-Jun-19  1323.60 1324.25, 1045.51 1043.77 & 1177.47 1177.26
03-Jun-19  1313.95 1317.10, 1039.47 1042.35 & 1175.99 1175.38
30-May-19 1276.45 1280.95, 1010.44 1015.92 & 1146.25 1151.70
29-May-19 1283.50 1281.65, 1016.02 1013.27 & 1151.04 1150.67
28-May-19 1283.90 1278.30, 1012.87 1008.20 & 1146.91 1142.29
27-May-19 UK Holiday


Mark O'Byrne is executive and research director of which he founded in 2003. GoldCore have become one of the leading gold brokers in the world and have over 4,000 clients in over 40 countries and with over $200 million in assets under management and storage.We offer mass affluent, HNW, UHNW and institutional investors including family offices, gold, silver, platinum and palladium bullion in London, Zurich, Singapore, Hong Kong, Dubai and Perth. 

In 1792 the U.S. Congress adopted a bimetallic standard (gold and silver) for the new nation's currency - with gold valued at $19.30 per troy ounce

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