Gold Spikes On Heavy Volume On Trump, US Political “Mess”

May 17, 2017

Gold prices rose for a fifth day to a two week high in early European trading on increasing US political risk pertaining to the Trump Presidency and the increasing risk of impeachment and a US political civil war.

Stocks and US Treasury bond yields tumbled as investors moved cash into safe-haven gold amid a global market selloff.

Gold moved higher on very heavy volume yesterday and is now 1.5% higher for the week. Over one billion dollars of gold futures were bought in late afternoon trade yesterday contributing to gold’s fifth day of gains, its best run since April.

Gold’s gains may have been due to “memo gate” and allegations that President Donald Trump sought to shut down a federal investigation linked to his former National Security Adviser Michael Flynn.

Gold prices rose more than $6 an ounce in early London trading today to change hands at $1,247 per ounce, the highest level since May 3.

Concerns about political turmoil in the U.S. and poor U.S. housing data heightened risk aversion which is leading to dollar weakness.

The weaker than expected housing data added to recent negative economic data that is raising doubts over how many times the Federal Reserve will be able to raise interest rates this year.

The dollar traded at the lowest levels since the November elections against a basket of other fiat currencies after it was reported that President Trump asked former FBI Director James Comey to drop his probe into Flynn. Flynn was forced to resign on Feb. 13 amid questions over his contact with the Russian ambassador to the United States and discussions of US sanctions.

The political mess in the U.S. is finally impacting U.S. and global markets and ‘Trumpquake’ should lead to a new bout of risk aversion resulting in a reversal of recent trends and gold prices eking out gains again.

Related Content

Ransonware Attacks Show Vulnerability of Digital Financial System

Cyber Attacks Growing In Frequency – Entire Financial System Is Vulnerable

Cyber Fraud At SWIFT – $81 Million Stolen From Central Bank

“Cyber Security Loophole”- Bank Hackers “Unfettered Access” To Accounts

Number One Reason To Buy Gold and Silver Is “Cyber Financial Warfare”

News and Commentary

Gold Spikes On Heavy Volume As ‘Memo-Gate’ Fears Spread (ZeroHedge.com)

Gold hits 2-wk high on Trump concerns, weaker US housing data (Reuters.com)

U.S. Stocks Fluctuate Near Records as Dollar Drops (Bloomberg.com)

London suffers the fastest fall in house prices of anywhere in the UK (Standard.co.uk)

Men who stole $60,000 worth of gold while having a barbecue hit with $5,000 fines (ABC.net.au)

Caution Reigns as U.S. Politics Takes Center Stage (Bloomberg.com)

********

Mark O'Byrne is executive and research director of www.GoldCore.com which he founded in 2003. GoldCore have become one of the leading gold brokers in the world and have over 4,000 clients in over 40 countries and with over $200 million in assets under management and storage.We offer mass affluent, HNW, UHNW and institutional investors including family offices, gold, silver, platinum and palladium bullion in London, Zurich, Singapore, Hong Kong, Dubai and Perth. 

U.S. ranks third in world gold production with 240 tons per year