The U.S economy is showing signs of slowing. But this is good news for precious metals investors who have seen gold and silver prices drop in the wake of Marine Le Pen's weak showing in the French Election. This has been America's weakest first quarter performance in three years. From January to March, consumer spending fell sharply. And GDP only grew by 0.7% compared to a massive 2.1% jump in the fourth quarter of last year according to the U.S Department of Commerce.
If Trump wants to keep his faltering momentum, he will have to keep the economy strong. The markets are eagerly awaiting Trump's tax plan hoping that it will boost economic growth in the world's largest economy. As it stands, Trump’s approval rating is worse than all predecessors on record. But in his defense, much of his unpopularity can be directly attributed to a hostile media and staunch political opposition to his policies.
European Political Situation
In Europe, the political situation has calmed significantly as populism seems to be suffering a major defeat in the French election. Gold prices have fallen in the expectation that Le Pen will lose to Macron. But if the upsets in Britain’s Brexit and the American Trump victory are any indicator, polls should not always be taken at face value.
That being said, as it stands Macron is expected to win with 59% of the votes compared to Le Pens 41%. France is exhibiting the same disturbing geographical divide that wound present in the U.K’s Brexit decision. No matter who wins, political tension will remain high in this crucial European economy.
