Politics Boosts Gold Prices FBI Director Firing Has U.S. on Edge, Helping Gold Prices Political upheaval in the U.S. surrounding the decision to fire FBI Director James Comey is causing concern among investors, which has led to resurgent gold prices.
Former FBI Director Comey was cut by the presidential administration of Donald Trump.
During the campaign, Trump praised Comey’s investigation into then-candidate Hillary Clinton’s emails.
This is an irregular move as the sitting FBI director has only even been fired once before in the history of the organization, and that took place under vastly different circumstances.
In times of political turmoil, gold prices are often the beneficiaries as traders seek out investments that would be immune or at least guarded against any sort of radical shift in the economy.
Gold prices move higher amid U.S. political turmoil By Investing.com
as mentioned in Market participants were now looking ahead to upcoming data on U.S. inflation, retail sales and consumer sentiment, due later Friday.
On the Comex division of the New York Mercantile Exchange, for June delivery were up 0.26% at $1,227.36.
Elsewhere in metals trading, for July delivery jumped 1.13% to $16.448 a troy ounce, while for July delivery rose 0.20% to $2.513 a pound.
A weaker U.S. dollar usually supports gold, as it boosts the metal’s appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
The June contract ended Thursday’s session 0.43% higher at $1,224.20 an ounce.
as mentioned in Gold rose 0.5 percent in the previous session, its biggest one-day gain in a month.
“You continue to see the political uncertainty continue to support gold,” said ETF Securities analyst Martin Arnold, naming the dismissal of the FBI’s James Comey and the upcoming British election as sources of uncertainty.
But capping gains in gold are expectations that the U.S. Federal Reserve will increase interest rates in June.
Gold is highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar, in which it is priced.
Spot gold was up 0.4 percent at $1,227.21 per ounce by 1204 GMT.