The uncertainty that companies, sectors and investors had before the arrival to power of the new President of the United States, Donald Trump (which was scheduled for January 20) was definitely strong in the stock exchange market all over the world, as much as in currency and investment markets.
Since the tycoon was elected, company shares, currencies and stock markets have constantly flowed rising and falling without end.
Gold, the most popular precious metal, highly valued worldwide has entered the currency market movements, since investors don’t know whether the currency could collapse or the market could generate incalculable losses, they have opted to make a ‘safe bet’.
A few days before the new president was sworn, gold went up due to the imminent fall of the dollar. At the beginning of that week, gold started it off on the rise, getting more and more expensive on the raw materials market.
In addition to the rise of Trump to power, there’s also the conference that the Prime Minister of the United Kingdom (Theresa May) will hold after knowing there’s high probability of British choosing a ‘hard Brexit’.
Such move would represent the exit of the United Kingdom of the single market of the European Union, all in order to get back and restore their dominion over the border and its laws.
These events, along the political situations of some countries have generated the precious metal prices to rise, exceeding the barrier of 1,200 dollars per ounce during the second week of January.
Gold is a precious metal, highly valued in every country of the world, and it has remained that way for many years, regardless of the different political or economic situations, ever since ancient Egypt, where only the Pharaohs had access to it.
Investors have seen gold as a safe bet to protect their interests, especially during uncertain times, not only due to Trump getting power, but also the measures that he could announce and implement in one of the most powerful markets in the world: the US market.
The rise and place of gold in the market is preceded by the first announcement offered by the newly-elected president at a press conference. As during his speech, Trump didn’t help ease investor’s doubts regarding his plans for the country’s economy; instead he created even more speculations among them.
Such speech led to the dollar register a severe fall, which eventually helped gold, as usual. The reason of it is because the demand for gold is rising, since the bankers and investors are acquiring it as an alternative currency. Also, because the dollar is dropping, the cost of raw materials has dropped as well.