Gold is always considered as a safe haven by investors when compared to other investments like stocks, bonds, and currencies. Extending its recent upward trend, Gold prices have gained 6.5% year-to-date with Spot gold price reaching its five-month closing high of $1,288.50 an ounce. Due to the recent geopolitical concerns and uncertainty prevailing in the US economic policy under Trump administration, precious metals are seeing a revival in demand amidst investors. Spot Gold price was expected to reach up to $1300 as it surged intra-day to $1297.
Learn How to Exploit the Gold Frenzy! Also, the dollar index consolidated losses and fell below its key 101 level to reach 99.499 as of 18thApril 2017. Fed Chair Janet Yellen’s comments about interest rate hikes in December weighed on US Treasury yields and investors started looking for safe havens like yen and gold. The dollar index has dropped 0.77% and the Japanese yen surged 0.36% against the dollar at 108.52 per dollar. The increase in Gold price was also due to the decrease in U. S dollar value because of the comments from President Donald Trump who mentioned the Wall Street Journal that U. S dollar’ is getting too strong’. The U. S. dollar was also pressured by lower Treasury yields, but analysts are hoping that dollar will strengthen over time based on the outlook for U. S. monetary policy
This post was published at GoldSilverWorlds on April 26, 2017.
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