Previous post Next post

Gold Bullion Erases Post- Election Fall as Trump Wrong on Dollar – Daily Prophet

Gold Bullion Erases Post- Election Fall as Trump Wrong on Dollar – Daily Prophet 

Robert Burgess of Bloomberg Prophets

President Donald Trump sent currency markets into a tizzy late Wednesday when he signaled his preference for a weaker dollar. “I think our dollar is getting too strong, and partially that’s my fault because people have confidence in me,” Trump told the Wall Street Journal.

Although the greenback immediately dropped before stabilizing Thursday, that’s only part of the story. In fact, it has been falling all year as traders lose confidence in Trump’s ability to push his pro-business, pro-growth policies through Congress. Judging by the Federal Reserve’s U.S. Trade Weighted Real Broad Dollar Index, the currency is weaker now than at the end of November, the month of Trump’s election victory. Other markets are sending similar signals. Stocks are rolling over and yields on Treasuries suggest optimism for stronger economic growth is quickly fading.

BULLISH ON GOLD

It’s no wonder that perhaps the only market hotter than the one for Treasuries is the one for gold. Bullion is up 11.4 percent this year to $1,289.10 an ounce. In a survey this week, traders and analysts were the most positive on gold since December 2015, according to Bloomberg News’ Eddie van der Walt and Ranjeetha Pakiam.

In yet another bullish sign, prices have climbed above the 200-day moving average and Britain’s Royal Mint said bullion purchases jumped 20 percent in the first quarter.

“We have all these latent threats that have been around for a while, Trump, European elections, Brexit, and they’re all just becoming a little more acute,” said Mark O’Byrne, a director at broker GoldCore Ltd. in Dublin.

Gold is Taking Flight, November 2016 - April 2017

Gold is Taking Flight, November 2016 - April 2017

- Click to enlarge

 

 

 

Full story here
Mark O'Byrne

I founded GoldCore more than 10 years ago and it has been my passion and a huge part of my life ever since. I strongly believe that due to the significant macroeconomic and geopolitical risks of today, saving and investing a portion of one’s wealth in gold bullion is both wise and prudent.

Previous post See more for GoldCore Next post
Tags: ,

Permanent link to this article: https://snbchf.com/2017/04/obyrne-gold-bullion-erases-election-trump-dollar-prophet/

Leave a Reply

Your email address will not be published.

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>