UNITED STATES May 19 2017 12:35 PM
NEW YORK (Scrap Register): Gold may well remain underpinned by U.S. political uncertainty and ebbing expectations for tightening of U.S. monetary policy, said FXTM research analyst Lukman Otunuga.
The metal drew safe-haven buying Wednesday as stocks sold off on the most recent news reports about U.S. President Donald Trump. Concerns have skyrocketed over the current political turmoil in the United States, obstructing Trump’s efforts to implement his pro-growth policies, which simply punished the U.S. Dollar.
With expectations of an interest-rate increase in June by the Federal Reserve slowly diminishing amid the soft economic data, gold should find itself supported moving forward.
“Although uncertainty remains gold’s best friend, this spot could be temporarily replaced by Trump as his administration comes under increasing pressure. From a technical standpoint, gold has staged a remarkable rebound on the daily charts and a break above $1,260 should open a path towards $1,275,” Otunuga added.