Gold price holds steady amid anticipation over Fed policy, London silver up as Washington attacks Germany
As we alluded to yesterday, anticipation over Trump’s mix of policies is causing the gold price to fluctuate. Uncertainty over what happens next means gold traders are hedging their bets and not taking a noticeably bullish or bearish sentiment. CNBC reported that ‘spot gold was little changed at $1,210.79 an ounce by 0320 GMT and U.S. gold futures climbed 0.1 percent to $1,209.40’. Moreover, the Federal Reserve is staving off any potential rate changes until there is ‘greater clarity on [Trump’s] economic policies’.
CNBC also reported that some of Wall Street’s fund managers were tactically on the bullish side with regard to gold, owing to ‘Trump’s governing style and upcoming elections in Europe [that] will combine to create more stock market volatility and boost demand for the metal seen as a safe haven’.
This reaction came as Trump bemoaned the relative strength of the dollar, and that every ‘other country lives on devaluation’, signalling to investors the possibility of policies pursuing a weaker dollar, making room for the prospects of a strengthening gold price.
This revelation followed the director of Trump’s new National Trade Council, Peter Navarro’s, attack on Germany for ‘exploiting’ a ‘grossly undervalued’ euro. This comment from the former professor of economics and public policy looks to further fears of squabbling between the new Trump administration and other nations.
These comments were reflected in London silver markets, which shot up to an ‘11-week high at $17.50 per ounce on Tuesday, outpacing gold bullion’, according to bullionvault.
In other news, the BBC reported that a hoard of gold sovereigns and silver bars have been auctioned for £30,000, having been found behind a sofa in Northamptonshire. The Elizabethan sovereigns were dated from 1958 to 1967, with a dragon-slaying St. George on the other of the coin.
Link to this article: : http://www.goldmadesimplenews.com/gold/gold-price-holds-steady-amid-anticipation-over-fed-policy-london-silver-up-as-washington-attacks-germany-12897/