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Gold Hits a 4 Weak High as the US Dollar Falters

goldThis morning, spot gold (XAU/USD) moved higher to a four week high. Gold fund support from weaker equities and a major slump in the US dollar which hit a fresh 13 month low. The dollar is falling thanks to renewed political uncertainty in the United States.

Spot gold, during Asian trade hours at 12:30 am GMT, was up 0.1 percent at $1,255.92 per ounce. The bullion hit a 4 week high of $1,257.18 an ounce earlier in the. The price of the yellow metal had risen over two percent last week. It was up 2.1 percent.

US futures, for August delivery, of the bullion, rose 0.1 percent to $1,256.00 per ounce this morning.

Gold Prices focuses on Politics and Equities

This morning, Asian stock bourses fell as the demand for riskier asset classes waned. There had been a stronger demand but his has fallen off. The euro remains at a two year high as the European Central Bank is expressing, or seeming to, a lack of concern about its
strength. This is leaving the US dollar to wallow near a 13 month low.

The US dollar is struggling near multi-month lows against a basket of major currencies as US political drama is dampening investor hopes for quick passage of President Donald Trump’s stimulus and tax reform agendas.

The Trump Administration said that the US President was open to signing legislation toughening sanctions against Russia. This comes after a partisan effort in the Senate and House reached agreement on a bill late last week.

Republican Senate leaders aim to hold a procedural vote as early as Tuesday to repeal or replace Obamacare. It is very unclear which version of the bill that the US Senators would vote on.

Also, the president’s son, Donald Trump Jr., has hired a new lawyer with congressional experience.

About David Frank

David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.

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