What do Trump and OPEC policies have in common? They are both expected to chase up the price of gold. First up – Trump’s (expected) policies
1. Donald Trump’s arrival in Washington is expected to be accompanied by large infrastructure fueled stimulus spending along with tax cuts. When monetary policy was eased back in 2009, the economy was falling off a cliff. Now with the economy getting stronger, unemployment at under 5%, the lowest in a decade, and with the prospect of new cash being pumped in – makes inflation a near certainity. And what happens when inflation is on the rise (supply side inflation = too much money chasing too few goods and services)? It weakens the dollar causing people to rush to gold as a safe haven, likely causing a strenghening of the price of the shiny metal in 2017. Any bets for the price of gold in January, 2018?