Gold Touches Two Week High on Trump Drama

May 17, 2017 Share Print 0

Gold prices are posting solid gains and hit a two-week high in early U.S. trading Wednesday, on safe-haven demand and amid an eroding U.S. dollar index. June Comex gold was last up $16.70 an ounce at $1,253.00. July Comex silver was last up $0.203 at $16.945 an ounce.

World stock markets are shaky at mid-week amid a slumping U.S. dollar against the major world currencies. The dollar index hit a six-month low overnight and has been pressured in part recently by what many traders and investors see as increasing tensions in the Trump Administration that could at least delay or prevent his pro-business and other initiatives from succeeding, or at most eventually derail his presidency.

The latest reports on the Trump turmoil say the U.S. President may have asked the FBI to back off investigating ousted national security advisor Michael Flynn. Up to now, the marketplace had been mostly ignoring the politics in Washington, D.C. However, markets are now thinking Trump could be in some real trouble. Thatâ??s bullish for safe-haven gold.

Nymex crude oil futures prices firmer in early U.S. trading today. Oil bulls still have some upside momentum as Nymex futures prices have rallied around $6.00 a barrel from the May low.

U.S. economic data due for release Wednesday is light and includes the weekly MBA mortgage applications survey and the weekly DOE liquid energy stocks report.

via Kitco

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.