Tuesday, 24 January 2017
Gold steady as unease with Trump policy weighs on dollar
Gold prices were steady on Tuesday as the dollar remained under pressure on signs that United States President Donald Trump would adopt a protectionist stance on trade. Spot gold was mostly unchanged at $1,217.42 per ounce by 0337 GMT, after hitting their strongest since Nov. 22 at $1,219.59 earlier in the session.
U.S. gold futures inched up 0.2 percent, to $1,218. Trump formally withdrew the U.S. from the Trans-Pacific Partnership trade deal on Monday and told U.S. manufacturing executives he would impose a hefty border tax on firms that import products after moving American factories overseas. "We are looking at gold hitting $1,250 within weeks.
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The rationale is very simple. The market was in honeymoon with Trump. With him in power now, the reality starts to bite," said Dominic Schnider of UBS Wealth Management in Hong Kong. "The market starts to realise the euphoria on how he starts to accelerate the growth and is disappointed. Maybe his policies are inflationary rather than growth supportive."