On Friday (2 August 2019) US President Donald Trump announced new tariffs on Chinese imports. President Trump tweeted:
U.S. will start, on September 1st, putting a small additional Tariff of 10% on the remaining 300 Billion Dollars of goods and products coming from China into our Country. This does not include the 250 Billion Dollars already Tariffed at 25%.
Which ASX gold stocks have performed the best?
In reaction to President Trump’s tweet, the ASX fell 20.3 points by close of day (Friday 2 August 2019). However, the price of gold rose significantly to an all-time high of around A$2,117 per ounce, with the gold price rising in US dollars and the $US/$A exchange rate falling. The main gold stocks in Australia saw large gains - Saracen Mineral Holdings Ltd (ASX: SAR) up 10.8 per cent to $4.49, Resolute Mining Ltd (ASX: RSG) up 10.7 per cent to $1.86, Newcrest Mining Ltd (ASX: NCM) up 7.2 per cent to $36.66 and Evolution Mining Ltd (ASX: EVN) up 6.6 per cent to $5.15.
What is the global outlook for Gold?
The general global outlook for gold is positive. This assessment is made on the basis that there are a number of global political and economic concerns. A few concerns include the continuation of the proliferation of trade barriers in the form of tariffs mainly from the US and China, significant uncertainty around whether the new Prime Minister of the UK Boris Johnson can reach a successful Brexit deal and continued nuclear tensions in the Middle East surrendering the US and Iran.
With no resolution of these global economic and political concerns in sight, investors could expect gold and the Australian gold stocks to do well moving into the future.
This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978) (“ASR”). ASR is part of Amalgamated Australian Investment Group Limited (AAIG) (ABN: 81 140 208 288 Level 13, 130 Pitt Street, Sydney NSW 2000).
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