The pause in the US-China trade war has seen stocks soar, though gold continues to struggle, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
Markets soar as Trump blinks on tariffs
The weekend meeting between the US and China has yielded yet another 90 day pause, lighting a new fire under the market rally. The rebound from the April low was beginning to look a little tired, but today’s news has given it new life. The longer Wall Street continues to rebound, the harder it will be for investors to avoid putting money back to work in the US, even though worries remain that the data will start to deteriorate in the months to come.
Gold heads back to $3200
The news might have been great for stocks, but for gold it means more pain to come in the short-term. Gold prices tend to flatline in May and June, and hopes that a more practical approach to trade policy will prevail in Washington mean that one key plank of gold’s rally has been removed, at least for the time being.