Gold supported thanks to Trump and political uncertainties
|It seemed very unlikely that global political uncertainties would rekindle so fast after the French election, in which the second round between Emmanuel Macron and Marine Le Pen was a non-event.
Yet, as often in financial markets, uncertainties are coming from where it was not really expected. And those uncertainties are now coming from the US and more precisely, from the Oval Office.
The President Trump issue regarding the FBI investigation are weighing on credibility while rumours are growing that an impeachment procedure may at some point take place. Yet, we remain suspicious of that at this point but can see the dollar is getting weaker. This year was expected to be calmer for financial markets, but it may yet be complicated for Western countries.
On top of that, the equity markets had their worst day yesterday since Brexit. The S&P lost almost 44 points. This also supports the bearish move on the dollar. Anyway our view remains the same as we believe the economy is underestimated. We now consider that we are still at the start of a risk-off move and that gold is set to to strengthen further.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.