Trump Promises, Gold Gain
Donald Trump returned to office as the 47th President of the United States after being officially inaugurated yesterday on Monday (20/1). In his first state speech, Trump immediately promised to bring America back to its glory days and correct the mistakes made by his predecessors.
An interesting thing to note is that when Trump discussed economic issues in his speech, he said he would try to overhaul energy and immigration policies and put aside his aggressive tariff policies that could cause inflation and prevent the Fed from easing policy.
Trump's speech indirectly removed the obstacles that had been the main factors inhibiting the increase in gold and raised the value of the dollar, this speech also raised market players' expectations that the Fed would cut interest rates again, which was a driving factor for this yellow metal.
Gold rose and returned to the $2700 area after the Asian market responded to Trump's speech. The increase also occurred along with the weakening of the dollar and the yield on 10-year US bonds. Gold is currently trading at $2726.65, up 0.6% in the Asian session.
Source : Newsmaker
