The gold price remains resilient today on the back of Donald trump’s immigration policy of banning people from 7 different countries which has deeply divided America and sent them on a collision course with Europe
The precious metal now seems indifferent to the US president and investors, as most predicted a rise in the gold price on Trumps election while many expected a stronger US dollar on his proposed policies, but it seems all got it wrong,
With elections also coming up in Europe, and the possibility of Eurosceptic candidates being elected, the gold price may be in for further gains on even further uncertainty.
The US Federal Reserve’s interest rate decision followed by a monetary press conference due out tomorrow is also likely to affect the direction of gold,
"Gold's future direction will depend on the dollar, U.S. monetary policy and long-term interest rates," said Commerzbank analyst Carsten Fritsch,
"The immigration ban added to risk-off sentiment and boosted gold earlier,there is also political risk coming up in the form of elections in France and the Netherlands." He added.
Analysts at Julius Baer added to the debate, “We acknowledge the upside risks related to recent actions taken by President Trump, such as the immigration ban. Should he become the feared 'unguided missile', uncertainties would increase, fostering safe-haven demand and pushing gold prices significantly higher."
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