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  
Brexit: deadlock again28 May, 2020  

Recently the media reported that British Prime Minister Boris Johnson is planning to fly to Brussels in the second half of June. However, there are no special...

Swiss Bank sells off CHF28 May, 2020  

Yesterday, the head of the Swiss National Bank (SNB), Thomas Jordan, spoke about the state of the monetary policy in Switzerland - the main message is that now...

EU unveils 750 bln euro plan for coronavirus recovery28 May, 2020  

On Wednesday the European Commission announced an anti-crisis plan, under which it will pay the EU countries 750 billion euro, instead of 500 billion...


EU Antivirus Fund26 May, 2020  

The path to the euro's recovery is likely to be bumpy. Four European Union countries already nicknamed the "mean four" in the media are to blame. They categorically...

New sanctions and rising oil prices25 May, 2020  

Tensions between the US and China are growing. On Friday, the US Department of Commerce announced the blacklisting of 33 Chinese companies and...

PMI: The economic decline slowed down in May22 May, 2020  

Preliminary PMI indices for May published today indicate a slowdown in the economies of Japan, Australia, the Eurozone and the UK (US data will...


Germany and France set up 500 billion euro support fund21 May, 2020  

The euro rose on Wednesday after receiving support from the Franco-German proposal to create a common fund to support the economy of 500 billion euro...

Japan officially entered recession20 May, 2020  

First quarter GDP data released on Monday underscored the expanding impact of the outbreak, with exports falling 6% - the most since the devastating earthquake...

Economic calendar for the week 18 May, 2020  

The world is gradually moving out of quarantine: the "social distance" measures in Hong Kong are about to expire, the Indian authorities are preparing...