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Trump & Russia scandal sends gold skyward

The gold price has soared as markets react to the ongoing Trump scandal. On Tuesday the yellow metal was trading at around $1,231 an ounce. By midnight last night it had jumped to $1,262.23 according to Bullionvault.

The ongoing political scandal in Washington follows president Donald Trump’s sacking of FBI chief James Comey on 9th May. On 10th May Trump is alleged to have disclosed classified information to Russian foreign minister Sergei Lavrov in a meeting – both men are pictured above in the Oval Office.

Trump’s ties to the Kremlin and Russia’s role in his election campaign are now under official scrutiny. Robert Mueller, a former FBI chief under George W Bush, has been as been named special counsel to oversee an inquiry into Russia’s alleged meddling in the election and any Trump campaign ties.

The possibility of impeachment for Trump, just five months into his term, is now being openly discussed in political and media circles. However, although gold has enjoyed a significant jump at the news, the ongoing effect on the gold price is yet to be determined.

“I think prices have already been pushed up and we might see reversing of gold prices in one or two days. People are likely to go back to basics and see what the interest rates are going to be,” Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong, told Reuters.

However, other, market linked factors my add some further upward pressure. Odds for a June rate hike dropped to around 64%, according to Investing.com, down from more than 80% a week ago, while odds for a second rate hike by December fell to 37% from around 65%.

Reuters report the Dow Jones Industrial Average .DJI was down 372.82 points, or 1.78%, to end at 20,606.93 yesterday, the S&P 500 index .SPX lost 43.64 points, or 1.82%, to 2,357.03 and the Nasdaq Composite .IXIC dropped 158.63 points, or 2.57%, to 6,011.24.

The dollar index, which tracks the U.S. currency against six peers and had scaled a 14-year peak of 103.82 .DXY on Jan. 3, fell 0.6% to its lowest level since November 9, surrendering all of its “Trump bump” gains. The dollar also fell by nearly 2% against the yen.

Link to this article: : http://www.goldmadesimplenews.com/gold/trump-russia-scandal-sends-gold-skyward-13155/

Posted by on May 18 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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