Gold supported on heightened uncertainty after Trump’s win

The spot gold price rose during Asian trading hours on Thursday November 10 on heightened uncertainty in the global economy after Donald Trump was elected US President.

The spot gold price was recently quoted at $1,287.60/1,288.90 per oz, up $12.00 on the previous close. Trade has ranged from $1,274.40 to $1,288.80 so far. The yellow metal had jumped to $1,337.50 on Wednesday – the highest since September 30 2016 – when Trump started leading the polls during the US president election.

“The fact prices have retreated to $1,300 per oz suggests the market has perhaps learnt a lesson from the Brexit vote that knee-jerk reactions can be short-lived,” Metal Bulletin analyst, William Adams, said.

“Still, Trump’s shock win may well lead to some trend changes over the longer term. Talk of the US now spending its way to make the country great again could be seen as inflationary; amid all the other uncertainty, we expect this to be bullish for gold.”

Trump’s lead in the polls during the US presidential election had initially sent commodity prices and equity markets lower, and safe haven asset prices higher, though this was later reversed after Trump was confirmed to have won the presidency.

Uncertainty over Trump’s policy measures will likely induce market volatility in the short term, market observers said.

“Donald Trump’s presidential win will no doubt be at the centre of investors’ minds today with many pondering whether the incumbent president’s bite will be as extreme as his bark,” National Australia Bank said on Thursday morning.

“While a Clinton presidency was seen as providing a sense of predictability and stability, a Trump presidency is likely to bring uncertainty at least over the near term with the big question being to what extent Trump’s pre-election rhetoric can or will translate into policy action next year.”

In currencies, the US dollar index was recently at 98.37 on Thursday, down 0.25% from its previous close. It had fallen to a five-week low of 95.88 on Wednesday.

In other commodities, the Brent crude oil spot price fell 0.63% to $46.16 per barrel and the Texas light sweet crude oil spot price slipped 0.6% to $44.98 recently on Thursday.

In equities, the Shanghai Composite rose 1.06% to 3,161.66 so far today.

In data, weekly US employment claims are due later today.

In the other precious metals, the spot silver price rose $0.225 to $18.60/18.64 per oz. Platinum at $1,000/1,005 per oz was up $12 while palladium increased $9 to $676/684 per oz.

The post Gold supported on heightened uncertainty after Trump’s win appeared first on The Bullion Desk.

from The Bullion Desk https://www.bulliondesk.com/gold-news/asia-gold-gold-supported-heightened-uncertainty-after-trumps-win-123649/
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