Late-Breaking News: U.S. President Trump Impeached
Shortly after the post-market session came to its close, impeachment hearings went to a vote. In a landmark development, U.S. President Donald Trump became only the 3rd United States President to be impeached.
He’s been charged with two counts: abuse of power and obstruction of Congress. The House held a historic debate that lead to a Democratic majority voting a resounding “Yay.” Of course, across the aisle was a stark difference in opinion of votes as Republicans did all they could to deter the Impeachment.
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The markets have flip-flopped for weeks as rumors of impeachment eventually materialized into the events proceeding today. In response, gold has actually held a steady course while the broader stock market set new record highs multiple days in a row this month. However, shortly after news broke of the Trump Impeachment, Gold futures began to soar. As of 8:48 PM EST, futures were up 0.17% breaking above 1480.
A Bullish Case For Gold Stocks On Thursday?
Several key catalysts come into play when considering a truly bullish case for gold. These include geopolitical turmoil (cue China Trade War), low rates (thanks Fed), and economic uncertainty. Impeachment can easily be considered a checkbox on the bullish list, too.
But it wasn’t just gold, as silver also roared during the late evening hours. Meanwhile, the S&P (SPY) tumbled along with the Nasdaq. But investors ask, now what? The two previous impeachments saw starkly different results in the market.
President Nixon’s impeachment, which resulted in him departing from the White House was done in a short time frame giving a very strong sense of urgency to the market. As a result, gold and gold stocks skyrocketed, outperforming broader sector stocks.
However, when it came to President Bill Clinton’s impeachment, things were a bit different. Not only did Clinton not resign but as a result, there wasn’t that immediate sense of urgency to flee to safe havens. Since the saga was so drawn out, it was almost if the public was tired of hearing about it by the end of his 2 terms.
This essentially undermined what would have (and what many had thought) been another bull run for gold. Also, keep in mind that there were additional factors not present in the gold market during Nixon’s impeachment period as compared to Clinton’s.
What Does Trump’s Impeachment Mean For Gold Stocks?
As is the case with many safe-haven stocks, gold, silver, and the like tend to attract a different type of investor. But also consider that since the Trump election, the markets have moved to all-time highs, while gold prices have soared to their highest in 6 years. What does this mean? As most would have assumed gold moving in the opposite direction of the market, this hasn’t been the case at all.
Now, however, could see gold in striking distance of its next bullish move. At the very least, in the short term, Impeachment hasn’t been great for stocks. But it has been great for gold. Given this, it may not be irregular to see a rally in precious metals before the end of the year.
This is especially true since this news just came out tonight. Needless to say, there have been several stand-out gold stocks to watch this month that could find themselves on gold stocks watch lists through the holidays:
|Company||Symbol||Closing Price 12-18|
|Gold Resources Corp||GORO||$5.19|
|Gold Fields Ltd||GFI||$6.02|
Will these be among the top gold stocks to watch this week starting tomorrow?
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