Growth Stutters, But Gold Prices Remain Strong
Gold Prices Growth Stalls
Political unrest in the United States boosted gold prices to a near two-week high but, on Thursday, the commodity experienced a slight fall in price after several sessions of positive trading days.
The precious metal was valued at $1,255 an ounce by Thursday afternoon, after a spike had sent the price touching $1,265 earlier in the day. Gold prices could still recover to register a positive trading session by day’s end, keeping its current run of success alive.
Despite a small dip in the commodity’s value as of this writing, gold has been the beneficiary of the political turmoil that has racked the U.S. since Donald Trump assumed the presidency.
That political disorder reached a new head as several events coincided to increase uncertainty among investors and, therefore, sent them toward gold as a safe-haven asset.
The firing of FBI Director James Comey, the alleged leaking of top secret information to Russian officials by President Trump, and North Korean tests of long-range missiles all served to create an atmosphere of disorder of the kind that usually drives gold prices higher.
The dismissal of Comey is creating controversy, as some have alleged that Trump enacted the firing in order to slow down the FBI’s investigation into the sitting U.S president’s possible ties to the Russian government, and specifically how those ties impacted the 2016 election.
The leak of top secret information to Russia was alleged to have revealed the source of that intelligence, or at least to have provided the Russians with enough information that they could discern the source. The White House came out and denied that such information was shared.
All told, these three events, along with several other developments, have lowered the Greenback’s value and have pushed many investors to seek out protection via the yellow metal. Gold prices are expected to continue to rise, as the political tension will likely increase, with Comey planning to make a public hearing and the investigation continuing into the alleged leak that President Trump provided to Russian officials.