Gold price surge on Trump uncertainty may keep going in February, history shows

San Francisco (Jan 31)  Gold prices are rallying to start 2017 on concern President Donald Trump will institute protectionist policies and weaken the U.S. dollar. History says a one-month surge in gold tends to keep going during the following month.

The yellow metal was up 5 percent for January through midday Tuesday, the best month since June. Trump has seemed to go back-and-forth in recent weeks on supporting a border adjustment tax, which is a key component of the Republican tax reform plan.

"Our sense is that Mr. Trump doesn't hold any core policy beliefs and is apt to change his mind as he sees fit. This will lead to more political and economic uncertainty and less stability," hedge fund manager David Einhorn of Greenlight Capital wrote in a Jan. 17 investor letter to clients. Gold is one of Einhorn's top five largest positions.

Source: CNBC