Hi there, welcome to another market commentary from Rockfort Markets for what is the 5th of December 2019.
My name is Matt and this is Ricardo to my left. Ricardo, I guess the main thing going on right now in the UK election and what's happening with Brexit. What kind of update do we have there based on the latest ball, looks like the Conservatives are gaining, even more, probably more seats. There was a 12% increase in the latest poll and looks like it's going to be a comfortable win for the Conservatives, but then again, even if they win the election this three and a half year drama on Brexit might be over, but will it be over? The UK and the EU still have a lot to discuss about how they should get out of this arrangement. There's still a lot of things going on.
We don't really know what happens until people actually vote so anything can happen. This is exactly why gold might be interesting because with all of this Brexit going on and Trump just tweeting or opening his mouth to more tariffs, now is even adding more tariffs for the French products and also South American steel. This alone can add to the uncertainty and that is why gold is trying to get to that 1500 mark again. Hopefully, with all of this uncertainty, because gold loves certainty, we might even see gold go higher. I guess gold has always been that, when people don't know what's happening in the market and there are more questions than answers gold is the place people tend to move to.
Anything else happening and in terms of the S&P, or it seems like there's not happening? We were down two days, but yeah last night it really bounded again back to where it came from. It's more of the dollar that's moving with all of these like E's, I's M's or manufacturing index was down, so the question is, is this the start of the economy to start drifting downward again? So there are a lot of questions going on.
So is it this kind of this Christmas, New Years' time we see more or less volatile? Yes, although we might get the proverbial Santa Claus rally right, if we get that then we might even see new highs on the indices but we'll see. Very interesting, till the next time.
If you have any further questions about this you can contact us on our website which is rockfortmarkets.com or you can give us a call as well, and all the information is on our website.