Gold Prices Slide Amid Pause In Trump Trade Unwind
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Gold prices decline amid a pause in “Trump trade” unwinding
Kneejerk volatility risk high as markets weigh US fiscal outlook
Crude oil prices mark time, look to EIA data for direction cues
Gold prices declined as the US Dollar corrected higher after dropping to a seven-week low. The move appeared to be a broadly-based “off day” for the unwinding of the so-called “Trump trade”: the greenback rose alongside US Treasury bond yields and stocks advanced. Not surprisingly, a leg lower for the yellow metal was the opposite side of the equation.
From here, a quiet economic calendar will probably have the markets preoccupied with Trump-watching as investors attempt to divine where US fiscal policy is heading. The path of least resistance seems gold-supportive as traders trim exposure established after last year’s election but a stray headline that offers a glimpse of where the White House is steering may quickly change the landscape.