Article: Gold Price Impacted By Trump Affect

Discussion in 'Commodities Forum' started by longtermbull, Jan 31, 2017.

  1. longtermbull

    longtermbull Administrator Staff Member

    Joined:
    Nov 2016
    Posts:
    1,720
    Likes Received:
    20
    Since the presidential election in November there have been some fairly volatile swings in the price of gold. After hitting a high of $1300 an ounce prior to the presidential election the price fell to around $1100. There were strong expectations that the new incoming Trump government would significantly increase infrastructure spending which would prompt growth in the economy and inflation. At some point US interest rates would also follow suit to counteract inflation thereby reducing the attractions of gold. So, how has the price of gold been impacted by the Trump affect?

    Read full article
     
  2. JR Ewing

    JR Ewing Super Moderator Staff Member

    Joined:
    Feb 2014
    Posts:
    4,950
    Likes Received:
    39
    A stronger dollar has made gold less appealing in USD. I do like to buy a little of it frequently for various reasons, but I have taken to doing so with weaker currencies in recent times.
     
  3. longtermbull

    longtermbull Administrator Staff Member

    Joined:
    Nov 2016
    Posts:
    1,720
    Likes Received:
    20
    I know there are various technical factors but I find it a little strange that gold is relatively strong and markets are also relatively strong. Traditionally they tend to move in the opposite direction?
     
  4. JR Ewing

    JR Ewing Super Moderator Staff Member

    Joined:
    Feb 2014
    Posts:
    4,950
    Likes Received:
    39
    Many also like a little gold as an alternative investment as part of a balanced portfolio; an alternate form of currency - a possible hedge against inflation, certain disasters, etc.

     
Tags:

Share This Page