Saturday, November 12, 2016

Gold will rise with Trump Victory

With a Trump victory, gold prices will be on the rise. The Fed might want to raise rates but that will be an extremely costly move considering that full employment is not there and there are no signs of inflation. Trump's plan for fiscal stimulus and trade protectionism also leads to uncertainty.

It does not make sense for interest rates to rise while trying to stimulate the economy. Americans still need jobs to be created. Trade protection will lead to currency devaluation and it does not make sense for the US dollar to strengthen at this point.

Gold will rise.

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