Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Trump currency comments drive up price of gold

Published 01/17/2017, 04:31 PM
Updated 01/17/2017, 04:42 PM
© Reuters.  Remarks strengthen precious metal prices.

Investing.com - The price of gold and silver rose today on Wall Street, bolstered by comments about the strong dollar by President-elect Donald J. Trump. Gold settled at $1215.50 today, up 1.61%.

Silver settled at $17.20, up 2.62%.

Trump had said in an interview with a leading financial daily that the greenback was too strong, as compared to the Chinese currency, the yuan, and that a lower dollar would be quite helpful to manufacturers in the U.S. who sought to export goods made in the U.S. overseas.

Quite often, gold is seen as an alternative when faith in the dollar and other investments wanes. That seems to be the case today.

The remarks on the dollar are also being interpreted in light of Trump's comments on possible protectionist moves, like a tax on imports, to the U.S. from Mexico or China.

Weighing against the rise of gold were remarks by U.K. Prime Minister Theresa May, who said the U.K. is definitely leaving the European Union, as a result of last summer's referendum on the matter.

Investor demand for gold is further indicated as holdings of the largest physically-backed ETF, New York's SPDR Trust rose recently.

Credit Suisse (SIX:CSGN) said in a note to investors it remained "constructive" on gold prices, forecasting an average of $1,338/oz in 2017.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.