Following on from Friday’s gold high, it appears that the precious metal’s prices are remaining firm.
The spot price for gold was little changed, and was quoted at $1,256.61 per troy ounce during Asian Morning Trading Hours today (Monday 27th February 2017).
So far today, trade for gold has ranged between $1,255.40-$1,259.10.
Gold isn’t the only precious metal that is performing well at present. The spot silver price was also up, and was quoted at $18.41 per oz.
Investors are still awaiting more clarity on Trump’s economic policies. In the meantime, it is possible that a demand for gold bullion could be due to ongoing uncertainties.
President Trump has been invited to address law-makers at a Congress speech tomorrow, 28th February 2017. Although first year presidents do not typically give a State of the Union address, they do speak before the Congress approximately a month after inauguration, meaning it is time for Trump to address the Congress.
Trump is expected to reveal more details regarding his plans to cut taxes. Depending upon what he chooses to reveal tomorrow, could shape the demand and price for gold, both ahead of and following the Congress speech.
Around the World
Scotland has announced that they may go ahead with a second independence referendum this March (2017). This could have stimulated risk aversion in the bullion market, and could be keeping gold prices higher.
On Friday, Greece’s central bank governor warned that further uncertainty could ‘rock’ the country’s economic situation even more, especially if its own government and lenders could not conclude on the bailout review.
Looking further afield, Australian gold output has hit a 17-year high of 298 tonnes. It is probable, that unsteady global situations have been driving gold prices higher, which in turn could have persuaded gold miners to dig deeper.
Gold prices appear to be remaining above $1250 per ounce, as safe-haven buying continues. It is possible that the market is growing impatient with President Trump, as news regarding a stimulus spending program is waited for, alongside news of interest rates and tax reforms.
In continuation with the rest of the year, global political uncertainty could be steering investor’s attention towards precious metals.
A Note from Paul
“In my mind, gold has made a significant breakout at the end of last week, and is continuing today. Having solidified around $1230 for a few weeks, it suddenly broke out in an upwards direction to over $1260 late on Friday (24th February 2017).
With many things concerning the investment community, perhaps the people in the know are getting into gold, at a time that the public are rushing into stocks, just as those same people are getting out.
Can the stock market continue upwards, having peaked so many times recently?”
This blog represents one person’s opinion only. Customers should conduct their own research and take advice before making an investment. We do not offer investment advice.