Gold is on target to rack up its 6th straight day of gains on the back of doubts over US President Donald Trump’s planned policies as well as an unexpected attack committed on the British parliament.
At 4.35pm (GMT) the gold price was trading at $1,249 up from $1,242 in yesterday’s trading.
After nearly four months into his presidency, Donald Trump has failed to deliver on any of his policies such as imposing tariffs and cutting taxes which some investors now predict may not eventuate.The distrust began to unravel heavily yesterday, which caused a selloff in the stock market and left investors flocking to gold as safe haven.
"It seems that equity investors decided to take some money off the table, perhaps getting slightly wary about the progress in President Trump’s legislative agenda," INTL FCStone analyst
Edward Meir said.
"Gold will likely continue to rally going into Wednesday’s session as Tuesday’s U.S. stock market selloff was significant and will likely have a knock-on effect on international equity markets over the next 24 hours."he added.
Also, helping gold was a possible terror attack on the British parliament day which left a Policeman stabbed and many civilian casualties.
The attacker drove a car across Westminster bridge and then into the Westminster palace gates and was eventually shot by police as he attempted to lunge at another officer.
This tragedy is like to shake the British economy and may be another catalyst for investor to seek out the safety of gold and drive the price higher.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 58% of investor accounts lose money when trading CFDs with this broker. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
IMPORTANT: Please be informed, that our services are available for Professional Clients only.
|By clicking "Continue" you will be redirected to the website operated by FIBO Group, LTD company registered in BVI and regulated by FSC. Please familiarize yourself with the Customer Agreement through the link. Click "Cancel" to remain on this page.|