La Chine est un géant endormi. Laissez-la dormir, car à son réveil, elle fera bouger le monde

Spoken over 200 years ago, Napoleon Bonaparte said, “China is a sleeping giant. Let her sleep, for when she wakes, she will move the world.”

As a student of history Napoleon knew of the Chinese through his research. What is documented is that the quote above acknowledges China’s tremendous population as well as their respect for learning and knowledge. His insight still holds true; however, at this point, the giant has woken up.

Currently there is much confusion as to what the complex negotiations have accomplished, and whether or not the Chinese President Xi Jinping and President Trump will sign the “phase one” agreement in Chile later this month.

It is even questionable as to whether or not there will be an Asia-Pacific Economic Conference held in Chile this year at all. On Wednesday Reuters News service announced that the 2019 Asia-Pacific Economic Cooperation Summit was canceled by the Chilean president Sebastian Pinera.

However, on Tuesday Reuters also reported that Jared Kushner stated that the U.S. and China have come to an understanding on trade relationship direction, citing a “fabulous deal” with Beijing. “The United States and China have come to an understanding on the direction of their trade relationship after a nearly 16-month trade war, White House adviser Jared Kushner said on Tuesday.”

What is evident is dependent on who you’re speaking with and will determine the “spin” as to the real current progress being made between our two superpowers.

However, today’s jobs report which came in well above expectations clearly indicates that the economic condition of the United States remains strong. It was reported today that 128,000 new jobs were added in October which was well above expectations in some cases by as much as 70%. Add to that the substantial upward revisions to the August and September numbers.

Considering that China’s GDP growth is at a 27-year low, it is clear that the net effects of the trade war have been felt globally, and the Chinese are experiencing the greatest hardship.

A combination of the rate cut announced yesterday by the Federal Reserve, as well as the jobs report data greatly exceeding expectations has given a boost to U.S. equities as well as gold pricing. As of 5 o’clock EDT the Dow Jones industrial average has ended the week at 27,347.36 after factoring in today’s gain of over 301 points. At the same time gold experienced a fractional gain, and following yesterday’s sharp $17 advance has gained another two dollars with gold futures currently fixed at $1516.70.

I believe this data suggests that we will see gold continue to rise throughout the month of November and into the final quarter of 2019. In fact, our research indicates that gold could easily test $1600 per ounce by the end of the year.

Wishing you as always, good trading,