Soaring gold becomes top ‘Trump trade’

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In recent weeks, gold has become the best performance “Trump Trading”, surpassing other basic classes, as the inauguration of the US President as the demand for trade war and the demand for large growth for asylum metal.

This year every week’s price priced rose price, as this week’s victory raises intrusion tariffs and hit a new record $ 2,942.70. It was preceded by almost 7 percent before the inauguration of January 20, although it slips on Friday.

In contrast, the Wall Street’s S & P 500 shares have risen less than 2 percent, and the other popular trump, such as stronger dollar yields, higher treasury yields or Bitcoin.

“When trading contracts, gold goes away,” said James Steel, an analyst at HSBC, indicating previous examples.

“The more tariffs that continue, the more global trade hindered, and how good it would be for gold,” he added.

KULON’S RECOGNITIONAL PROVIDED IN NEW YORK IN NEW YORK, which increased by 116% after the elections, as traders and banks are in a hurry Get gold out of Londonthe largest loop of physical trade and the US. It has created it for a week to bring gold out of the British pad.

Trump’s latest tariff salvo includes a program to introduce “mutual” tariffs on US commercial partners, including winding and opponents. He has also applied additional 10% of China’s products.

Analysts say the global trading war will be recorded in economic growth and fuel inflation. Factors that are typically beneficial to the bars.

“Gold is a trump card,” says Nicki Shilse, analyst at MKS PAMP, a gold filter. “There is a positive ratio between tariff titles and gold prices,” he added.

While gold continued its long rally, other Trump crafts lost money. The dollar slipped 2.4 percent this year, but against the basket of other currencies and dropped sharply since the inauguration. The ten-year-old treasury profitability of the United States, which increased by only 4.8 percent in the past month, fell from the previous 4.48 percent, as the debt price was restored.

Traders and investors let me know The more gradual approach to tariffs than previously feared, raised the currencies of countries or regions with great exports, such as the euro. At the same time, the market focus is focused on the risks of growth from the trade war, investigators caused government bonds to buy government bonds.

“Gold can act as a geopolitical fence, inflation fence and a dollar fence,” said a multi-level management of Trade London assets.

“There are the first two who have made gold such strong investments in the last year, the Central Bank and the retail purchase are high.”

The last decline in Greenback added the top pressure on gold, which is in dollars, making it cheaper in other currencies.

Since gold has hit a number of record heights, some banks have already had to update the prices for the price set in December. Last week, both UBS and Citigroup updated their target price up to $ 3,000 per troy ounce.

This year, strong purchases from central banks, as they seek to diversify away from the dollar, are expected to be the main engine of gold demand.

Central banks bought more than 1,000 tons of gold last year, for the third year in a row, according to the World Gold Board, industry body.

Mark Bristow, CEO of Good Gold Mining Company, said that the chaos all over the world helped the fuel investor as a safe shelter.

“It is very clear that the market says that there is only one reserve currency in this world, and that politicians cannot print, and it is gold,” he said.