Gold Hits $1,200 Following Trump’s Press Conference

Following Donald Trump's first press conference since being named the President-elect, the gold price rocketed to seven-week highs.


Following President-elect Donald Trump’s press conference Wednesday morning (January 11), the gold price closed in near $1,200 an ounce.

Midway through the day, the yellow metal reached $1,196.90 an ounce–its highest price in six weeks. By Thursday (January 12), the yellow metal had reached $1,205.10 per ounce–a seven week high–before dropping slightly back down to $1,200 as of 12:57 p.m. EST.

In that regard, the gold price rally came as a result of Trump’s press conference comments stirring uncertainty in the stock market, MarketWatch reported.

Brien Lundin, editor of Gold Newsletter, said Trump’s press conference was indicative of what’s to come, “with his hyperbolic unpredictable style bringing volatility to investment markets.”

“Gold will react positively to the uncertainty Trump creates, but only over very brief periods,” he said.

On that note, gold futures for February increased 0.9 percent to $1,196.60 per ounce–its biggest gain since November 22–while the US dollar was down by 0.4 percent to 101.57 after trading near to 103.

MarketWatch further noted that since the US presidential election in November, the dollar has gained more than five percent as markets anticipate Trump’s policies, which could potentially impact economic growth and inflation.

Nico Pantelis, head of research at Secular Investor, told the publication that Trump didn’t impress many people at the press conference. Rather, he said, fear and future “potential turmoil” is making its way back into the markets.

“This had a positive impact on risk-off assets like gold,”  he told MarketWatch.

Similarly, Phillip Streible, senior market analyst at RJO Futures, told Kitco that markets were anticipating Trump to give an idea of what the economy will look like in 2017, but didn’t get that.

“Without a clear idea on economic growth, I think equities will continue to suffer, which is why I am bullish on gold,” he said.

With Trump’s inauguration looming, investors will surely be keeping a watchful eye on the stock markets and how far the yellow metal could move above $1,200 an ounce.


Don’t forget to follow us @INN_Resource for real-time news updates!

Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.

Get the Latest Gold Investing Stock Information

Get the latest information about companies associated with Gold Investing delivered directly to your inbox.

Gold Mine Development
Gold Production/Mining
Gold Project Generators
Gold Prospecting and Exploration
Gold Resource Definition/Pre Feasibility
Gold Resource Expansion/Feasibility Study/PEA

By selecting company or companies above, you are giving consent to receive email from those companies. And remember you can unsubscribe at any time.

Gold Outlook 2017!

Click here to get a clear perspective on the gold price and what the experts see coming in 2017 with our FREE Special Report (value of $49). Limited time offer. No credit card required.   Get My Free Report  

Leave a Reply