The chances of a partial government shutdown in the week ahead appear to have fallen substantially with the announced resignation of House Speaker John Boehner. But if a deal does not get done, look for a speedy rally in gold, says trader Phillip Streible.
“If we do have a shutdown … the gold bugs are going to come out to work here,” the senior market strategist at RJO Futures said Friday on CNBC’s “Trading Nation.”
Streible reasons that some will think a partial shutdown is a sign to get into safe-haven assets, a group that gold arguably belongs to.
After all, when a shutdown occurs, “people go without paychecks, uncertainty is risen, and everybody gets a little less confident in the federal government—no matter how unconfident they may have started out,” Max Wolff of Manhattan Venture Partners said Friday.