The gold price is hovering near a one month high today after gaining in the previous session, as investors focus their attention to the Trump administration’s proposed policies, which are looking shaky following last week’s effort to derail Obamacare. At 3.36pm (GMT) the gold price was trading at $1,258 up from $1,253 in yesterday’s trading.
Some analysts are now predicting the gold rally to continue as doubts surface over US president Donald Trump’s ability to push through his policy agenda, after the failure of repealing Obamacare, and with tax cuts on the agenda, this may be make or break time for the Trump administration.
One of the promises the US President made during his presidential campaign was to slash corporate taxes, which has so far benefited the US dollar and kept gold from moving higher but that may be about to change, and investors are expected to exit the greenback, and a move towards $1,300 for gold is not out of the question. INTL FCStone analyst Edward Meir noted,
Dollar weakness is something that could propel prices higher, especially in light of the latest CFTC report that shows dollar longs building for a third week in a row despite ongoing weakness. This tells us that much more length remains to be disgorged, potentially being constructive for gold.
The precious metal has now made a stunning comeback after reaching a low of $1,225 in the aftermath of the election of Donald Trump, and now gold is starting to behave as most investors predicted after Trump's victory by moving higher.