You have to choose (as a voter) between trusting the natural stability of gold, and the natural stability of the honesty and intelligence of the members of the government. And, with due respect for these gentlemen, I advise you, as long as the capitalist system lasts, to vote for gold.
— George Bernard Shaw
It was only a matter of time before the fragility of the current US political and economic situation was laid bare: a situation that has translated directly into a solidly recovering gold price. Speculation around the health of the US bull market, the future path of interest rates, international trade and the future of Trump himself have seen gold surge by more than $100 per ounce since mid August.
Let’s take a look at recent events. Markets were optimistic going into the final Federal Reserve Board (Fed) meeting of the year on Wednesday 19 December. Volatility in the stock market, an ongoing trade dispute with China, sluggish economic growth in Europe, and the recent inversion of the yield curve caused many market participants to hope that the Fed would pause rather than hike the Fed Funds rate.