trump immigration ban
Copyright: Evan El-Amin / Shutterstock, Inc.

Trump’s Immigration Ban Drives Up Gold Prices

When Donald Trump was first elected as President of the United States, gold futures prices took a downward turn after a surprise bump on election night. Already weak after months of strong stock growth and a strong U.S. dollar, gold trended downward for most of the rest of 2016. However, despite predictions it would remain low early in 2017, January has seen some impressive gains in gold prices.

Today, Jan. 31, 2017, gold has been trading at $1,212 an ounce. This is, in part, due to Trump administration criticisms about intentional devaluation of currencies, including the Euro, as well as investor nervousness following the controversial immigration ban.

Why the Immigration Ban Is Driving Gold Prices Up

Several weeks ago, top financial analysts were indicating that gold would struggle to maintain prices above $1,200 per Troy ounce. Now, following the destabilizing impact of the immigration ban announced last week, experts are stating that gold prices could soon surge to above $1,500. This is due to a two-fold response from investors. On the one hand, they are hedging their bets against increased protectionism, a policy practice which is evident in the immigration ban.

On the other hand, investors who typically invest in currencies are anxiously awaiting the announcement of a second federal increase of the prime rate, which will have a temporary impact of strengthening the dollar and possibly pushing down gold prices in the short term.

Other International Forces Also Impacting Gold Prices

India has reduced its gold investment and purchasing, focusing on analyzing their domestic gold reserves and prioritizing domestic gold for future investments. Given that the Indian subcontinent is home to over 1.2 billion people, their potential for investment is substantial. For now, their actions have had minimal impact on global gold prices, but that could quickly change.

Combine this with the pending release of the Sharia gold standard, which will open up gold investments for the massive Sharia Muslim population, and the potential for increased fluctuations in gold prices is substantial.

Now Is a Great Time to Trade Gold Online!

Due to the rapid, frequent changes in gold prices, right now is an excellent time to invest in gold via an online Forex platform. Doing so allows you to leverage your investment from the comfort of your own home, controlling the buying and selling of gold futures easily.

How to Trade Gold?

Take advantage of the daily changes in the price of gold. Start trading gold today by opening a trading account with easyMarkets and get up to $2000 bonus*. As an industry first, they have also launched a unique deal cancellation tool as a way to manage your risk on any bad trades. By selecting dealCancellation on the trading platform whenever you make a trade, you can cancel your losing trade within 60 minutes and get your money back. *Terms and Conditions Apply

Top Broker Bonus Offers

plus500_logo
Get up to 30% bonus on your first deposit! T&C apply. Your capital is at risk.
avatrade-logo
Limited time offer. Get up to 30% bonus on first deposit. T&C apply
easymarkets_logo
Up to $2,000 bonus based on first deposit amount.