Gold prices could extend their gains after Donald Trump’s inauguration if he continues to make statements as president that prompt investors to enter safe havens.
As president-elect, Trump has angered China, India and Mexico, some NATO countries and, just this long weekend, Germany (over its luxury cars), to name a few. Gold prices in New York trading have risen 11.9% since Nov. 8.
However, the assumption is that once Trump takes office, he will either be more restrained or advisers around him will dampen whatever he says. Based on Trump’s more than two dozen tweets since Saturday, there is a high probability that that assumption is wrong.
Five particular statements from Trump could send gold soaring. But first, let’s review the technical position of gold at this time.
This annotated chart is of SPDR Gold Trust GLD, the widely held exchange traded fund. I’m using this ETF since it’s the most popular way for investors to invest in gold. Similar observations can be made of the iShares Silver Trust SLV, and the Market Vectors Gold Miners ETF GDX.
The following are key observations from the chart:
- Even though spot gold has rallied about $80 from its recent low and has penetrated the important “psychological” level of $1,200 an ounce, it’s still far away from the first resistance shown on the chart.
- In 2016, gold decisively broke to the upside from the downtrend line, shown on the chart if you refer back to 2011…Read more at MarketWatch
You are receiving less than 2% of the content from our paid services …TO RECEIVE REMAINING 98%, TAKE A FREE TRIAL TO PAID SERVICES.