Gold prices were ending the U.S. day session with solid gains Wednesday, on safe-haven demand and amid an eroding U.S. dollar index.
World stock markets are shuddering at mid-week amid a slumping U.S. dollar against the major world currencies. The dollar index hit a six-month low Wednesday and has been pressured in large part recently by what many traders and investors see as increasing tensions in the Trump Administration that could at least delay or prevent his pro-business and other initiatives from succeeding, or at most eventually derail his presidency.
The latest reports on the Trump turmoil say the U.S. President asked the FBI to back off investigating ousted national security advisor Michael Flynn. Earlier this week focus was on Trump reportedly leaking U.S. secrets to the Russians. Traders and investors wonder what will be next. Up to now, the marketplace had been mostly ignoring the politics in Washington, D.C. However, markets are now thinking Trump could be in some real trouble.
That’s fully bullish for safe-haven gold. The sense of the marketplace right now is that the Trump turmoil will get worse before it gets better.
http://www.kitco.com/news/2017-05-17/Sharp-Gains-In-Gold-Amid-Shaky-Trump-White-House.html