Volatility expected in gold as Trump deadline approaches

5 January, 2017

The gold price continued to rise today, chalking up its 6th gain in 7 sessions and bringing it to a 3 week high as investors brace for the release of the minutes meeting later today from the US Federal Reserve.

At 2.34pm (GMT) gold was trading at $1.164 up from $1.159 in yesterday’s trading.

Although most expect few surprises from the Fed, any talk of interest rate hike may put pressure on gold.

The precious metal was also helped today by a fall in the US dollar against most major currencies which tends to benefit gold as it usually moves in the opposite direction to the greenback,

“The dollar index has consolidated and the big outflow from exchange traded products which has been the biggest headwind for gold in the past few months, has stopped recently,” Julius Baer analyst Carsten Menke said.

“It is too early to tell if we are going to have a stabilization in the holdings because the fundamental backdrop hasn’t really changed and we are still in this positive post-Trump election environment where we are hoping for better growth in the States, a stronger dollar and higher interest rates,” he added.

With the inauguration of Donald Trump as President of the United States just over 2 weeks away, we may see some volatility in the gold price on the back of some of his remarks and election promises, and if he will in fact, follow through on them.

Gold “will move towards center stage as Trump’s attitude [toward] China affects globalization and creates divisions between east and west,” he said. “The U.S. economy can be strong alongside a strong gold price.” noted Julian Phillips, founder of Gold Forecaster.com


Source link  
Gold need to hold this level

The gold price is now trading at its lowest level since the start of the year and is now consolidating around the $1275 mark and according to one...

Gold faces key moment

The gold price has remained above the $1300 mark in today's trading session after breaking this important level yesterday and today's outcome...

US dollar down on dovish Fed

As predicted yesterday, the Fed kept interest rates on hold but the following monetary statement was much more dovish than analysts had predicted...


Gold needs some big news

The gold price is under further pressure in today's trading session as investors ponder the chances of another rate hike from the US Federal Reserve after the release...

Good news for the precious metal

Gold just got another reason to cheer after the latst minutes meeting from the US Federal reserve where the tone left many analysts predicting that...

Gold to stay above $1300

The gold price has recovered strongly over the past 3 trading sessions after coming perilously close to touching the $1300 mark and...


Oil price hinges on trade talks

Oil is down once again in today's trading session as investors and the market alike remain divided on the future direction of the price with a lot...

Oil needs Opec cuts

The latest tumble in the oil price has now reached gigantic levels, almost equaling the declines reached during the global financial crisis and according to some analysts, we may...

Gold price has rallied sharply

A declining stock market is always good for gold as investors look for somewhere safe to ride out the uncertainty. Precious metals are seeing buying...

  


Share it on:   or