Protectionist Trade Policy Shine Spotlight On Gold As World Dumps Dollars and Treasuries

Protectionist Trade Policy Shine Spotlight On Gold As World Dumps Dollars and Treasuries

Governments and investors around the world seem to lose confidence in US dollars and US Treasury bonds. The start of a new global trade war has rattled The world as rules around the global economic order has been changed in a few weeks. America’s movement against highly protectionist policies has triggered a stock market accident, a $ 9% decrease in the US dollar this year, and the US Treasury bonds are also down.

As the world’s economic belief in the United States has been rattled, global investors Pulling out of US assets. Why is this significant?

Earlier, in times of financial and financial crisis, investors across the globe Purchased The US Dollar and US Ministry of Finance’s bonds such as investments in a safe port. Now they are that Sales the US dollar and Sales US bonds.

Gold has now been moved to the top step as the world’s ultimate SAFEN-HAVN ACTIVE. In April, Gold set new highest heights over $ 3,400 per year. Ounce as the flight to safety is poured into the marks of precious metals.

It is worth considering that US policies are changing at a time when our nation owes a lot of money. US national debt tops $ 29 trillion. In the financial year 2025, Congressional Budget Office forecasts a budget deficit totaling $ 1.9 trillion. To finance our deficits and debt, our nation is dependent on capital inflow from foreign governments and investors.

In a new economic world order where the United States is not seen as a reliable partner, it makes sense for foreign investors to diversify their stocks away from US assets, experts say. In fact, it has already started to happen. According to Bank of America, foreign investors accounted for a smaller proportion of buyers in March auctions.

Foreigners own approx. 20-30% of US stock and bond markets, a total of about $ 19 trillion of US equities, $ 7 trillion treasuries and $ 5 trillion of US bonds, according to Apollo Management. A wholesale turning of capital flow into US markets can cause significant financial pain, fresh stock market staff and significantly higher interest rates.

Meanwhile, gold is increasingly seen as the only Safe Haven game in the city. Goldman Sachs Group is now projecting that gold could climb to $ 3,700 by the end of this year. If the US economy slides into recession, the company is projecting Gold, which hits $ 3,880 this year. Looking into the middle of next year, Goldman expects gold to climb $ 4,000 per day. Ounce.

The US economy is not out of the woods yet. The dust has not even started to settle down. In meetings with closed doors in the White House, CEOs warned of Walmart and the goal of private president that customs policy could result in empty shelves in their stores in the coming weeks. If you want to take steps to protect your hard -earned assets, explore our gold inventory now. Gold for $ 4,000 can be here faster than you expect.

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