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Gold Prices: Trump Press Conference

Gold Investments

Gold prices. If investors were looking for more details about Trump’s plan for the US economy at this first post-election press conference, they would have been disappointed, writes senior bullion dealer at Gold Investments, Oliver Temple.

Markets like clarity. The President-Elect on Wednesday gave very few specifics on tax cuts or on his promise of increasing infrastructure spending.

Trump said at the press conference that Medicare, the biggest buyer of drugs, will negotiate drug prices. The pharmaceutical industry has spent years fighting this.

The reason is that if Medicare has power to insist on a price, drug companies will have to pay for it. After the President-Elect’s comments, health-care stocks and other equities prices fell.

With no firm direction for the US economy currently being given by the US presidential administration, investors are turning to gold. The precious metal tends to do better when economies are weaker and during times of economic uncertainty.

At the end of 2016, gold prices slipped when Trump announced plans to stimulate the country’s economy with a massive boost to the construction sector. Some saw this as a sign that the US economy would become stronger.

Traders Unconvinced

Traders are now unconvinced that there will be three US interest rate hikes in 2017. The precious metal has this week rebounded, increasing 0.9% at $US 1,196.60 a troy ounce. This is up more than 3.9% for the year.

When Trump does come into office in a few weeks, we expect some volatility in the markets. Gold prices could immediately increase and then may fall as the markets settle. This will have a short-term bearing on gold.

Gold Prices

For foreign investors, if the dollar does slide, gold prices could become more affordable and demand would likely increase.

Investors will be watching carefully how Trump performs particularly in his first few weeks of office. Gold could become attractive for investors depending on how the markets react, not just in the US but globally too.

Now could be a good time to invest in gold.

Gold Investments offers a wide range of gold coins and bars which are normally the cheapest on the market. Secure storage is also available at our vaults at the London Silver Vaults. Our gold storage prices are also some of the lowest on the market.

Take a look at our quality gold now.