Gold prices go sky-high! Trump's crushing defeat on passing healthcare reform and the statements from the Federal Reserve have intensified people's trust in gold.
How come gold prices have reached a 5-week maximum?
On 21st Tuesday, gold prices jumped from $1,228 to $1,246 per ounce after the official declarations the Chicago Fed President made on Monday: “The Fed is likely to wait at least until June policy meeting to decide whether to hike interest rates.” As a result, the Euro gained strength driving gold prices higher.
Both on 22nd Wednesday and 23rd Thursday, the price of gold took a ride between $1,245 and $1,248 as investors expected to know whether the US President could obtain support to “repeal and replace” the Obamacare.
According to Reuters, this measure is supposed to be “Trump's first legislative victory”, and therefore financial markets consider it as a test. “This is a key event not just for gold but for all risk assets,” said Robin Bhar, at the multinational banking company Société Génerale:
"We should see some safe haven flows into gold if he can't get it passed because it means all his other programmes have a low probability of succeeding."
On 24th Friday, due to a rising dollar gold prices took a nosedive to $1,244 and then gradually reached $1,248 per ounce. Having failed to establish his healthcare reform, the President lost credibility in establishing other major measures, thus benefiting U.S. bond yields, stocks, and of course, gold.
During the weekend, the gold price held on $1,243 per ounce. And finally, after this wave of events, on 27th Monday, gold prices went sky-high and reached the maximum since 28th February, 2017: $1,257 per ounce.
Gold is the best healthcare for it gives stability and prosperity to provide for your family.
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