Market Overview

Gold Is The New Equity In The Trump Rally

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Gold Is The New Equity In The Trump Rally

The Dow Jones Industrial Average recently broke above the Dow 20,000 milestone, but has since pulled back amid President Trump's controversial policies. Meanwhile, the price of gold is higher for the third straight day and is on track for its best month since June following the surprising Brexit results.

By Tuesday morning, the price of gold was higher by 0.3 percent at $1,199.07 an ounce by 10:30 am in London.

"The gold market is in thrall to the Donald Trump show," David Govett, head of precious metals trading at Marex Spectron, told Bloomberg. "If Trump sticks to his immigration policy of the last few days, then gold should remain supported."

Trump Is Doing As He Says

Jeffrey Halley, a senior market analyst at Oanda, explained to Bloomberg that gold and other safe-haven commodities are likely to continue rising higher. The reason? Trump is implementing new policies that are consistent with what he said would be done during the campaign trail.

Halley added that Trump's promises which are now policy are ones which will keep "equities and the dollar soft" but support higher commodity prices.

Here are how other precious metals are performing:

  • Spot silver is up 8 percent in January.
  • Palladium is up 10 percent in January.
  • Platinum is up 9.4 percent in January.

Posted-In: Commodities David Govett Donald TrumpCommodities Politics Markets Media General Best of Benzinga

 

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