5 Reasons Why You Should Trade Gold Now

Whether it's behaving like a bull or a bear, the gold market offers high liquidity and excellent opportunities to profit in nearly all environments due to its unique position within the world’s economic and political systems. While many people choose to own the metal outright, speculating through the futures, equity and options markets offers incredible leverage with measured risk.

1) Gold tends to appreciate in low-interest environments
Most of the central banks, except Bank of England, are cutting their interest rates and forecasting more aggressive cuts in the future. During times like this, gold becomes an attractive asset since yield from bonds and savings accounts becomes lower.

2) Gold as a safe-haven asset
Gold is regarded as a safe haven asset, along with assets such as Japanese Yen and Swiss Fran. With the US-China trade conflict continuing to escalate and the stock market in a turmoil, traders could opt for gold to hedge against inflation.

3) Gold is on a long-term uptrend
Investors optimistic about the economic prospects of developing nations such as China and India may see gold investing as a way to profit from this view. Gold has historically played an important role in these countries, and more wealth will likely translate into more demand for gold. With the affluent group growing, the demand for gold will only increase as time goes by.

4) World chaos is good for gold
We are seeing mayhem in many parts of the world at the point of writing. Just to name a few:

• Hong Kong protests
• Brexit
• US-China trade war
• US-EU trade war
• North Korea’s missile launches
• China cutting permits for tourists travelling to Taiwan

Louis Teo

Market Strategist