The gold price is under pressure in today’s trading after a speech last night by US President Donald Trump, as well as comments by various US Federal Reserve board members.
At 7.18pm (GMT) gold was trading at $1246 down from $1,248 in yesterday’s trading session.
In a speech to congress last night, Trump laid out his plans on tax reform and spending on infrastructure, amongst other things, which although lacked concrete details, was enough to boost the US dollar and pressure the gold price,
"There was precious little detail over such key issues as tax reform, infrastructure spending, regulatory roll-back and Obamacare. But there was plenty to convince everyone that he was serious about driving forward with these issues” ,said David Morrison, senior market strategist at SpreadCo.
Comments by New York Fed President William Dudley that the US economy was moving forward also affected the gold price, with some predicting there is now a real possibility that the Fed will lift rates in `march,
“It seems to me that most of the data we’ve seen over the last couple months is very much consistent with the economy continuing to grow at an above-trend pace, job gains remain pretty sturdy, inflation has actually drifted up a little bit as energy prices have increased,” Dudley said.
“We’re very much on the trajectory that we said that we thought we’d be on and we said if we were on that trajectory, we’re going to gradually remove accommodation, so, put it all together, I think the case for monetary policy tightening has become a lot more compelling,” he added.
Risk warning: Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, your level of experience and preparation of taking risk. The possibility exists that you could sustain a loss of some or of all of your initial investments and therefore you should not risk more than you are prepared to lose. Please seek independent financial advice if necessary.
|By clicking "Continue" you will be redirected to the website operated by FIBO Group, LTD company registered in BVI and regulated by FSC. Click "Cancel" to remain on this page.|