Gold Gets Another Plus With Powell Under Pressure
Gold has a raft of supportive drivers, from central-bank buying and investor inflows into exchange-traded funds to concerns about the trade war and, separately, the US fiscal outlook. Mounting pressure on Federal Reserve Chair Jerome Powell adds another.
President Donald Trump and his allies — who’ve long criticized Powell’s conduct of monetary policy for being too restrictive — have opened a fresh front over his handling of the Fed headquarters renovation. Against that backdrop, Deutsche Bank argues Trump’s potential dismissal of the Fed chair is a major, underpriced risk that could trigger a selloff in the US dollar and Treasuries. Such a scenario would be bullion-positive.
Gold’s had a sizzling run this year, rallying by more than a quarter. The precious metal last set an intraday record in April, topping $3,500 an ounce, and it still looks good for a push higher this half with all that’s going on. Criticism over Powell is becoming a fresh reason.
Source : Bloomberg
