Gold continues to rise in the USA market closed at the price of $1,202.25. Gold remained under pressure this week but still end at a positive rise of .12% the factors that affected the gold prices were the speech from the Chinese president, the crude prices, hard Brexit fears and the inauguration of Donald Trump.
Trump takes Oat as 45th president of the USA
The wait is over and Donald Trump takes charge as president of USA. The content of his speech was quite friendly not only for the people of America but also for other nations. “America is First”, it was the slogan oh his speech. He promised, his reforms will create jobs and wealth.
His first speech showed lots of positive signs for the investors. It is expected, the yellow metal will respond positively in next week.
The Yellen Speech
Jannet Yellen is a popular economist in the USA. She is the chair of the board of governance of the Federal Reserve System. Traders closely listen to her speeches and the comments regarding the future monetary policy of the federal bank.
In her latest speech, she backs the gradual rise in the interest rate. Adding more to her comments, she also mentioned that the Fed is not behind the curve. Moreover, running the economy persistently “Hot” is risky and unwise.
Her comments will put end to the predictions that the Fed will raise the interest rate to stabilize the dollar. The investors will continue to show their confidence in the gold investment.
Therasa May’s speech
It was a week of speeches that affected the gold prices. This time it was the prime minister of the UK, Theresa May. She supported the decision of the Brexit and showed the UK is getting more realistic on this change.
She warned the EU leaders will commit the act of “calamitous self- harm” if they try to punish UK for leaving. Her clear stand on the Brexit will stabilize the Pound in the international market. The investors may show interest in the Pound investment other than gold.
How do copper demand effects the gold prices?
Copper is also a popular commodity after gold. The USA market affects the copper prices in the whole world. The USA stands the fourth position at the production of copper. Other than gold, China is also a regular buyer of USA copper.
How will it affect the gold? The copper is not a very expensive metal but if prices of the gold tighten, the investors will like to invest in other metals. Being a cheap commodity, it is a good choice for the investors.
Will USA stock fall after trump Inauguration?
It’s an important question, how do USA stocks will react after Donald trump will take the oath? Will be it time for the investors to turn to safe yellow metal rather than buying stock?
The stock market is already cautious ahead of trump inauguration. The investors will welcome any detail given on tax reforms, infrastructure spending, and insight of foreign as well as domestic policies. Certainly, the coming week is not only important for the USA stocks but also for the gold market.