This week gold prices rose, and the stock market declined.
This week the President-elect, Donald Trump, announced that the greenback was “too strong” and investors across the world quickly poured money into gold.
With 2017 being a year of significant change in the political realm, it should be clear why the price of gold and the activity of the stock market would be so closely watched over.
It is safe to say that unless you are heavily invested in gold or consider yourself a gold geek, examining its activity all the time would be unnecessary. Every so often, however, it is important to stay connected with the prices of different natural resources, how different foreign currencies match up and the current costs of precious metals.
For those of you who are not watching the gold charts daily, here is a brief overview of its performance in the last week.
Following Trump’s statement on cash, gold has reached an 8-week high, raising eyebrows of many investors. Of course, the more people buy gold, the more the price rises. It will be interesting to see if this current spike continues to peak or if it plateaus over the next week or so.
All eyes will be on the inauguration on January 20, 2017, for some clarity on Trump’s economic plans, since investors often turn to gold as a safe-haven in times of economic uncertainty.
With the Chinese Lunar New Year happening later this month, gold experts and economists alike are expecting positive numbers in China.
Another reason why gold rose this week is continued talks on Brexit. Citizens of Great Britain and the rest of Europe are worried about the possible outcome, thus buying more gold.
Prime Minister Theresa May will call on Britons to reject the bitterness of the general vote in a speech that many newspapers have described it as setting the stage for a “hard” exit from the EU.
The unpredictable future of America and Europe’s economies have shown how susceptible the price of gold can be. To gold geeks and non-gold geeks alike, it will be interesting to see what tomorrow holds for our world’s most precious metal.
Spot silver rose 0.4 percent to $16.84 an ounce.
Platinum prices were firm at $983.10, while palladium fell 0.1 percent to $748.22.