Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Gold prices surge as Trump turmoil deepens

Commodities May 17, 2017 07:16AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Gold surges to 2-week high
 
USD/JPY
-0.05%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
XAU/USD
-0.50%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
XAG/USD
-0.98%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DX
+0.17%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
Gold
-0.54%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
Copper
-1.00%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Investing.com - Gold prices added to overnight gains in North American trade on Wednesday, touching the highest level in two weeks as markets become increasingly worried about political turmoil involving U.S. President Donald Trump.

Comex gold futures rose around $10.00, or about 0.8%, to $1,246.42 a troy ounce by 7:15AM ET (11:15GMT). Meanwhile, spot gold was at $1,246.64. Prices of the yellow metal jumped to an overnight peak of $1,248.90, the most since May 3.

Gold notched a fifth-straight winning session on Tuesday as the dollar sank to a six-month low amid signs of slowing economic activity in the U.S.

Markets were unnerved after media reports said President Trump asked then-FBI Director James Comey to end a probe into Michael Flynn, his former National Security Advisor, relating to alleged ties with Russia.

The news came one day after a report accused Trump of disclosing sensitive intelligence obtained from a close U.S. ally with Russia's foreign minister about an Islamic State operation.

The reports added to concerns that the president will be unable to successfully push through his economic stimulus program in the face of mounting controversies.

The news dampened demand for risk-sensitive assets, such as global equities, and sparked a rally in assets perceived as safe, such as the yen, bullion and U.S. Treasuries, which are often used as a hedge in times of political uncertainty.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, weakened for a sixth straight day, falling around 0.3% to 97.82 in New York morning trade.

It slid to an overnight low of 97.76, levels last seen in the immediate aftermath of Trump's surprise victory in November.

Besides political developments, traders are mulling over a string of weaker than expected U.S. economic reports in recent days, which saw them scale back expectations for more rate hikes by the Federal Reserve this year.

Odds for a June rate hike dropped to around 64%, according to Investing.com’s Fed Rate Monitor Tool, down from more than 80% a week ago, while odds for a second rate hike by December fell to 37% from around 65%.

The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.

Also on the Comex, silver futures gained 18.6 cents, or about 1.1%, to a two-week high of $16.92 a troy ounce.

Elsewhere in metals trading, platinum tacked on 0.5% to $941.95, while palladium dipped 0.6% to $787.15 an ounce.

Copper futures dipped 0.7 cents to $2.543 a pound.

Gold prices surge as Trump turmoil deepens
 

Related Articles

EU leaders squabble over energy crunch response
EU leaders squabble over energy crunch response By Reuters - Oct 07, 2022 4

By Jason Hovet, Sabine Siebold and Robert Muller PRAGUE (Reuters) -Divisions between European Union leaders over capping gas prices and national rescue packages resurfaced on...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email