Saturday , 23 November 2024
Home Forex Gold is getting beaten up on Trump’s win but eye the pick for Treasury Secretary
Forex

Gold is getting beaten up on Trump’s win but eye the pick for Treasury Secretary

Gold is down $78 today to $2666 on the combination of higher Treasure yields and a stronger US dollar following the election. There is also some element of ‘sell the fact’ and relief that we don’t have a contested, uncertain result.

It’s a 2.8% daily drop but it’s only a moderate setback in this year’s 29% rally. I don’t have an opinion on the short-term as momentum trades are likely to extend here but gold traders will want to keep an eye on Trump’s selection for Treasury Secretary.

A strong candidate is hedge fund manager John Paulson. The New Yorker ran a small merger arb firm before soaring into prominence and billionaire status by buying CDS on mortgage-backed securities in the sub-prime crisis. After that he became an outspoken gold bug, even establishing a gold-specific fund that was ultimately unsuccessful.

Ultimately, he was a one-hit-wonder in markets but he bet on Trump early and has been auditioning for a spot in cabinet.

This article was written by Adam Button at www.forexlive.com.

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

CCI Histogram Volume MT5 Indicator

The world of financial markets can feel like a whirlwind of charts,...

Global Market Weekly Recap: November 18 – 22, 2024

Global markets rallied despite heightened Russia-Ukraine tensions, with gold and oil gaining...

FX Weekly Recap: November 18 – 22, 2024

Major currencies saw wild swings as Russia-Ukraine tensions escalated. Safe havens rallied...

Fed: U.S. government fiscal sustainability tops the list of financial system risks

The Fed's twice yearly Financial Stability Report highlights: U.S. government fiscal sustainability...