Donald Trump Slip Weakens Dollar and Boosts Gold Prices
Continued political turmoil has helped spark gold prices to several days of straight gains. The latest news is that U.S. President Donald Trump allegedly revealed top secret information to Russian government officials. This has analysts looking for gold as a safe-haven asset.
President Trump continues to have one of the most irregular presidencies in living memory. The scandal-plagued administration has been a boon to gold prices, due to the financial volatility that the political uncertainty has created in the market.
Gold came in at $1,237 an ounce on Tuesday.
Following the quick firing of FBI Director James Comey—which had itself caused a slight market turn towards the precious metal—The Washington Post now reports that Trump revealed top secret information to the Russians.
The White House has since denied these claims, although reporters believe that the denials were vague, and did not cover the main claim of The Washington Post piece, which is that Trump revealed how top secret information was gathered, which then can be traced by the Russians to the source of the leak itself.
To make things worse on the international stage, the information was supplied to the U.S. by an ally, which could threaten security relations in the future.
This recent U.S. political disorder, coupled with North Korea’s renewed threats and missile tests, has weakened the U.S. dollar and has sent investors looking toward gold to provide a risk-management asset.
Gold prices are nearing a two-week high on the back of these developments. This is coming after gold fell to nearly $1,200 an ounce, due to the U.S. Federal Reserve’s hawkish tone on interest rates and an easing of tensions across the world. Many of those tensions, however, have since been reignited. The U.S. must now juggle several potential political crises at once and the dollar is likely to suffer. This should benefit gold.