gold investment, silver investment


Trump’s Press Conference Pushes Gold above $1,200

January 12, 2017, 9:30 AM Arkadiusz Sieroń , PhD

Yesterday, Trump held a long-awaited press conference. What does it imply for the gold market?

The long-awaited Trump’s press conference is behind us. It was his first press conference since winning the presidential election. Markets expected some details on the economic agenda of the new administration. Unfortunately for them, the press conference was dominated by questions on potential connections between the president-elect and Russia and on potential conflicts of interest with his business. Trump did not provide the details of his economic plan in his briefing. Instead, he focused on hackers, relinquishing control of his business to his two adult sons, and attacking media which published fake news about an alleged dossier of unverified information about Trump owned by Russians.

Regarding the economy, the president-elect just said that he would bring companies back to the U.S, create many jobs, build a wall on the border with Mexico and also introduce a border tax. What was lacking were the details of his tax reform or fiscal stimulus – the most important elements that triggered a rally after he won the election. Therefore, markets were disappointed by the lack of important information. Hence, the U.S. dollar and real interest rates declined yesterday, while gold gained. Today, the price of the yellow metal jumped above $1,200 during Asian trading hours. Indeed, the uncertainty about the U.S. economic policy of the new administration is positive for the gold market and thus, the price of gold may increase further in the short term, since the president-elect failed to provide a fresh catalyst for the reflation trade. However, it is too early to trump the end of the Trump rally, especially that the reflation trade is not only about Trump’s fiscal policy. Stay tuned!

If you enjoyed the above analysis, we invite you to check out our other services. We focus on fundamental analysis in our monthly Market Overview reports and we provide daily Gold & Silver Trading Alerts with clear buy and sell signals. If you’re not ready to subscribe yet and are not on our mailing list yet, we urge you to join our gold newsletter today. It’s free and if you don’t like it, you can easily unsubscribe.

Disclaimer: Please note that the aim of the above analysis is to discuss the likely long-term impact of the featured phenomenon on the price of gold and this analysis does not indicate (nor does it aim to do so) whether gold is likely to move higher or lower in the short- or medium term. In order to determine the latter, many additional factors need to be considered (i.e. sentiment, chart patterns, cycles, indicators, ratios, self-similar patterns and more) and we are taking them into account (and discussing the short- and medium-term outlook) in our trading alerts.

Thank you.

Arkadiusz Sieron
Sunshine Profits‘ Gold News Monitor and Market Overview Editor

Gold News Monitor
Gold Trading Alerts
Gold Market Overview

Did you enjoy the article? Share it with the others!

Jan Market Overview

Gold Market Overview

Our summary is not merely backward-looking. On the contrary, the analysis should help investors better understand the precious metals market and draw appropriate investment conclusions for the New Year.
We will also share our fundamental outlook for 2020, presenting our base scenario and its implications for the gold market. We will focus on the impact of the macroeconomic drivers, such as the interest rates, the Fed and the ECB monetary policies, the U.S. fiscal policy, etc. We argue that the fundamental outlook for gold has deteriorated since 2019.
Last but not least, we will analyze the potential upside and downside risks for the gold market in 2020. In particular, we will examine whether investors should expect recession this year.

Read more in the latest Market Overview report.

menu subelement hover background