While the trade war between the two strong countries continues, the jitters of it can be seen in the equity markets, where gold has reaped the benefit. Gold prices have risen above $1,300 an ounce on 31st May when the president of the United States Donald Trump mentioned his plans to impose 5 percent of the tariff on all Mexican goods.
Gold prices have continued to climb and the S&P/TSX Global Gold Sector Index has now added C$16.7 billion in market value ($12.5 billion) over the past three days.
In aspects for investors in Canada, gold stocks have been a safer bet than materials this year. The Gold Index has gained 6.3 percent so far in 2019 while materials are up only by 5 percent. This has been the worst performance among the eleven sectors in Canada’s benchmark index.