The rise of many dollar-denominated commodities in Wednesday’s trading session has continued into Thursday’s, with a rise of 1.64% to 1,182.01 at 16:52 GMT.
A falling dollar aided in pushing many dollar-denominated commodities higher in Wednesdays trading session, subsequent to the release of minutes from the Feds December meeting. With traders and analysts eager to detect any palpable signs of further interest rate rises after that of 2016.
Concern regarding the “uncertainty” surrounding the initiation of President-Elect Donald Trump’s premiership aided in pushing the precious metal higher, as gold is often regarded as a relatively safe investment in times of uncertainty and considerable market volatility.
It is the direction of the U.S. economy, when the Trump government begins implementation of its programmes that has many analysts, traders and investors flocking to gold, to ensure some level of stability in an increasingly volatile market environment. With hints provided by the President-Elect providing only minor elucidation on the direction his government will assume subsequent to his inauguration.
Significant stimulus programmes and an emphasis on manufacturing have been at the forefront of the President-Elects economic plan – and anticipation of such an approach has been considered likely by many analysts, contributing to the rise in the Dow in the final trading sessions of 2016.