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“Disturbing” Trump speech leaves gold steady as investors await Jackson Hole

Trump

Despite dipping yesterday ahead of the Jackson Hole monetary conference tomorrow, gold edged up slightly this morning. At 8.40am British Summer Time it was at $1,285.78 with December delivery at $1,290.90. The change is small and the price looks largely flat as investors are hesitant to make any big calls until the outcomes of the Jackson Hole conference can be determined.

While this yesterday seemed to have depressed the yellow metal slightly, gold has been buoyed today by Donald Trump’s indication he would close down the US federal government to in order to build a wall along the Mexican border.

Addressing a rally in Arizona Trump said “if we have to close down our government, we’re building that wall. we’re going to have our wall. The American people voted for immigration control. We’re going to get that wall.”

In a rambling speech the US president also said he would “probably” get rid of Nafta and hinted at pardoning Joe Arpaio, a sheriff charged with illegal detention of migrants. A former director of US intelligence told CNN he found Trump’s address “downright scary and disturbing”. “I question his fitness to be in office,” said James Clapper.

Markets now seem to have priced Trump’s reactionary comments. Mark To, head of research at Hong Kong’s Wing Fung Financial Group told Reuters: “Most of the people are now looking for hints from the Jackson Hole meeting between the central bankers. The most important thing is economic fundamentals…central banks are going to have tightening measures in monetary policies to have normalisation. So I don’t have much higher upward momentum for prices,” he said, before going on to reference Donald Trump’s ability to bring uncertainty to markets; “on the other hand what has been supporting gold for the last six months or so is the risk aversion”.

Photo: Gage Skidmore

Link to this article: : http://www.goldmadesimplenews.com/gold/disturbing-trump-speech-leaves-gold-steady-as-investors-await-jackson-hole-13359/

Posted by on Aug 23 2017. Filed under Gold News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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