Gold traders have been eagerly watching current events in the United States to see how President Trump’s policies and reactions to various situations will affect the economy, which will impact gold futures pricing. This past week has been full of interesting news, including Trump’s so-called Muslim ban (and the temporary stay on this ban), which has had an impact on the market.
Trump’s Muslim Ban
The world stood in shock over the past couple of days since President Trump signed an executive order that prevents travel to the United States by people from certain predominately Muslim countries. The countries he banned included Somalia, Yemen, Sudan, Iraq, Iran, Syria, and Libya.
This list doesn’t include some countries experts believe to have a high terror risk, including Afghanistan and Saudi Arabia. Additionally, some countries not on the list are ones in which Trump’s companies do business. While the ban was the subject of a temporary stay issued by a federal judge, the shockwaves have impacted the world. This shock could have some effect on gold futures pricing this week.
Dow Jones Rally
Before the Muslim ban, the Dow Jones Industrial Average rallied. This past week saw the Dow Jones inch above 20,000 for the first time. This shows that the United States dollar strengthened a bit during the week. As the dollar strengthens, gold declines. Even though the Dow Jones and the S&P closed out the week with small losses, many people are looking toward Trump’s campaign promises to strengthen the economy. This could move gold a bit lower, which would be an excellent time to invest if you are considering adding gold into your portfolio.
Gold Futures Expectations
You might see gold futures drop over the next week. Part of this is because of the decreased demand in China. The Chinese New Year has the markets shut down until Feb. 3. It appears that the liquidations that have plagued gold trades recently are over and the sale of futures should take hold soon. Keeping an eye on market futures pricing can help investors get in when prices dip, but deciding when to sell might prove to be challenging.
