Gold has rallied this year and Trump has added fuel to the fire on the back of investor's concerns.
The risk-off play is backing the bid in Gold as the DXY struggles around the 100 mark, bonds pick up demand, a spike in volatility, global stocks slumping and all this looks bullish for the precious metal as the Trump party seems to be finishing before schedule and the punch bowl looks pretty empty right now.
Markets had been expecting positive outcomes for the US economy under Trump's pro-America and US business administration, but, so far, some of his executive orders have been all but pro-business with his travel bans that were contested and found to be unconstitutional, blocked by the Courts and his authority put into question.
Markets have simply lost confidence in Trump for now and with Trump talking down the dollar, this could be a trend that continues as a prop for gold bugs out there who are calling for a swing in the US economy to the downside - a turn in the dollar should support a rally in Gold, as it often moves inversely to movement in the greenback and lower yields make it less attractive to invest in assets that offer interest, sending more investors to precious metals. Gold can run higher to $1,240 and 6th October lows before meeting any real technical resistance with $1,120 the downside target. Longer-term, should the status quo continue on, $1,300 will soon com under pressure again.
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.
Latest Forex News
Editors’ Picks
AUD/USD extends losses below 0.7300 amid mixed signals, eyes China CPI
AUD/USD refreshes intraday low while stretching pullback from two-month high. Risks stay mildly positive after the heavy optimism as vaccine hopes confront trade war jitters, Fed signals. October’s Aussie NAB data, China inflation numbers to decorate the calendar.
XAU/USD nurse biggest losses in three months around $1,850
Gold stays depressed near the lowest in six weeks. The yellow metal posted the heaviest declines since Aug 11, while refreshing the multi-day low, after the news concerning the coronavirus propelled market sentiment and extended the USD strength.
WTI: Pullback from 11-week-old resistance line, 100-day SMA eyes $40.00
WTI sellers attack $40.00 while extending U-turn from three-week high. Bullish MACD keeps energy buyers hopeful above 200-day SMA. October high adds to the upside barriers, before key SMA, trend line resistance.
Covid Vaccine: Pfizer's success promising for three other efforts, rally may have only just begun
Scientific outlet Stat explains that Pfizer's vaccine success is promising for three other efforts. Approval of other vaccines would hasten the distribution of immunization. The stock market rally may have considerable room to run.
EUR/USD’s reversal from 1.1920 finds support at 1.1800
EUR/USD halts a four-day rally and retreats to 1.1800. The US dollar bounces up on higher US T-Bond yields. EUR/USD remains biased higher, looking to test 1.2011. The euro has put an end to a four-day rally on Monday after been rejected at 1.1920.