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  
Pound surges, rate hike may follow

The British pound is powering ahead today against its US counterpart as more positive data raises speculation that a rate hike from the Bank...

Gold may rally towards years end

After a horror 6 months the gold price has found much needed support over the last 4 weeks and is now sitting above the $1,200 mark and depending...

New tariffs lift US dollar

As widely expected, US President Donald Trump has slapped another $200 billion worth of tariffs on Chinese goods which has caused a lift in the US dollar today against the major...


Will the US dollar jump on Thursday?

The US China trade war has now come to the top of the headlines again with US President Donald Trump keen to go ahead with an extra $200 billion...

Big Money is avoiding the pound

Just when we thought that a deal between the European Union and Great Britain was in the making and thus avoiding a hard Brexit, another spanner...

Pound gains on Brexit negotiations

The British pound has surged back through the $1.30 mark after progress made today on Brexit negotiations raised speculation that a deal...


IEA report siks oil

The oil price had a rough time last week, hitting its lowest level since join after a report by the energy watchdog showed rising inventories which raises concerns over global growth...

Gold in the hands of the US dollar

The last 2 months has been extremely painful for those who invested in gold with the precious metal plummeting more than $100 and at the time...

Is Yen finished as a safe haven currency?

Along with the Swiss Franc, the Japanese Yen has historically been the other currency that the market has deemed a safe haven in times of financial instability...


In the past 24 hours Bitcoin has lost -0.42% and reached $6457.92356338. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -0.9032% and is now at $1.1467. Start trading and making money on Forex today.

In the past 7 days Ethereum has lost -3.4% and is now at $202.510495181. Have the most popular cryptocurrencies compared online 24/7.


Top Brokers offering Daily Forex Market Reviews


Forex Currencies Forecasts


Top 10 Forex Brokers 2018

# Broker Review
1easyMarketseasyMarkets91%
2FXTMFXTM88%
3HYCMHYCM87%
4Alfa-ForexAlfa-Forex86%
5FxProFxPro85%
6FIBO GroupFIBO Group84%
7OctaFXOctaFX83%
8HotForexHotForex82%
9FXCMFXCM80%
10AvaTradeAvaTrade77%
  


Share: