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Andrzej Barabasz
Gold futures for December on the Comex exchange declined by 1% on Thursday, reaching $3,597.3 per ounce.
Since the start of the year, the valuable metal has increased in value by 35% as a result of heightened investor interest in secure assets. Simultaneously, conventional ‘safe-haven’ assets like the dollar and US government bonds have declined because of political instability and budgetary concerns.
Recently, the market has been reacting to Trump's criticism of the Fed's leadership, particularly his efforts to dismiss Fed Board of Governors member Lisa Cook. This matter is presently under consideration in court.
Daan Struyven of Goldman Sachs stated that a situation where the Fed's autonomy is undermined might result in increased inflation, decreased stock and long-term bond markets, and a decline in the dollar's status as a reserve currency.
Gold, conversely, is “an asset whose worth does not rely on confidence in institutions,” he noted.
source: tradingeconomics.com
Since the start of the year, the valuable metal has increased in value by 35% as a result of heightened investor interest in secure assets. Simultaneously, conventional ‘safe-haven’ assets like the dollar and US government bonds have declined because of political instability and budgetary concerns.
Recently, the market has been reacting to Trump's criticism of the Fed's leadership, particularly his efforts to dismiss Fed Board of Governors member Lisa Cook. This matter is presently under consideration in court.
Daan Struyven of Goldman Sachs stated that a situation where the Fed's autonomy is undermined might result in increased inflation, decreased stock and long-term bond markets, and a decline in the dollar's status as a reserve currency.
Gold, conversely, is “an asset whose worth does not rely on confidence in institutions,” he noted.
source: tradingeconomics.com
