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Gold Market Overview: May 22, 2016

Donald Trump's presidency is becoming a disaster as his political opponents in the media and government take every opportunity to drag down the controversial American president. There are even calls for an impeachment, and this creates massive political uncertainty in the global economy. Concerns about Trump's presidency are holding back the equities markets and staving off concerns about a Fed rate hike in the next few months.

Many market participants are beginning to doubt that Trump will have the political capital to push his tax cuts and fiscal spending agenda. The U.S stock market is holding up remarkably well considering the gravity of the situation, and gold is beginning to show a slight inverse correlation with the market. If the situation worsens, look forward to tremendous upside in precious metals.

 

In Europe, the markets are mixed as the EU settles its own political turmoil with the favorable conclusion of the French elections. However, European investors are still worried about potential fallout from the worsening political situation in the U.S as Trump makes his first state visit to the continent. The euro remains extremely strong against both the dollar and pound. 
 

The Gold spot is currently at $1,256.80 per ounce while silver is at $16.94. Platinum and palladium trade for and $939.90 and $761.50 respectively. Palladium continues to outperform platinum due to oversupply in platinum production. Silver demand remains high due to strong photovoltaic demand.

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