The gold price has rocketed higher today, racking up its 5th straight day of gains after a bombshell emerged that US president Donald Trump has been interfering with the work of the FBI.
At 3.59pm (GMT) the precious metal was trading at $1,256 up from $1,236 in yesterday’s trading.
It is alleged that President Trump asked the former FBI director, James B. Comey, to close down the federal investigation into Mr. Trump’s former national security adviser, Michael T. Flynn, in an Oval Office meeting in February.
It is alleged that Comey noted this down in a Memo directly after the meeting.
“I hope you can let this go,” the president told Mr. Comey, according to the memo. Trump now seems to be going from one problem to the other and this time around impeachment proceedings cannot be ruled out and this is bound to send shock waves through financial market which will benefit gold.
“Perhaps is facing his toughest time in the office,” said Naeem Aslam, chief market analyst in London at Think Markets U.K. Ltd.
“Investors are questioning whether there is “any possibility of impeachment becoming a reality, because certainly that would hit the confidence massively,” he added.
Some are claiming this gaff by Trump is comparable to the Watergate scandal and if that is the case who knows how high gold can go.
“Safe haven assets have caught a bid as markets have become increasingly concerned by the maverick actions of Donald Trump,” said Richard Perry, a Hantec Markets analyst, in a note.
“This has got commentators making comparisons to Nixon’s Watergate scandal, and markets are responding,” he added.