by Jan Skoyles, GoldCore:
- Gold hits 12-week high
- USD Gold price up 4.85% in last month
- Sabre-rattling from Trump administration set-to benefit gold
- Iran upset and Middle East tensions could drive oil and gold prices up.
- Financial Times foresees “not only currency wars but a fully fledged trade confrontation that could be disastrous for the world economy.”
- Royal Mint producing 50 % more gold bullion coins and bars compared to 2016
- Utah moves to hold public funds in gold
- WGC report demand for gold hit four-year high in 2016
- Investment demand climbed by 70% last year fuelled by geopolitical uncertainties
The Trump administration continues to sabre-rattle at global powers and threatens to disrupt the status-quo of international relations. Comments in just 24-hours by Donald Trump and his team have included attacking an Ivy League university, a nuclear power and two of the United States’ key trading partners.
We continue to look on as the unconventional tweets and announcement appear, but in the meantime watch the gold price hit 12-week highs and inflows of roughly 1.2 million ounces surge into gold ETFs, as uncertainty continues to drive investors towards safe havens.
FOMC stand-by to watch the Donald
Many market observers may have found a funny sort of comfort in seeing the statement of the FOMC meeting, this week. A funny thing to say, but given each day appears to bring a new surprise there is something reassuring that meetings and announcements from the likes of the Federal Reserve, continue as scheduled.
Unsurprisingly, and despite Janet Yellen’s warnings of a ‘nasty surprise on inflation if it was too slow with rate hikes’, the Federal Reserve held back from a further rate rise this week. The committee painted a fairly positive outlook of the economy, it was perceived to be dovish. The statement helped to ultimately push gold prices higher as the dollar fell in disappointment to no rate hike. For some this was an example of ‘The Fed that cried Wolf.’
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