Gold miners surge as Trump risk lifts commodity optimism

London (Nov 9)  Gold jumped as much as $75 an ounce on Wednesday, while gold miners surged as investors watched Donald Trump edge ever closer to the White House. Gold miners surge as Trump risk lifts commodity optimism

But, as with the other knee-jerk market reactions to the news that the property developer with no previous political experience will be the 45th American president the yellow metal’s move moderated somewhat following his acceptance speech.

Striking a much more conciliatory tone than characterised his campaign and notably lacking any mention of his more extreme campaign promises, the speech seemed to calm some of the initial jitters and saw gold fall back toward the important technical level of £1,300 per ounce.

The move to gold is unsurprising given its traditional role as a safe haven during times of uncertainty.

As European Wealth investment strategist, Richard Stammers put it, “Safe havens are up – our gold positions were put in precisely in case of this and are acting as the buffer we wanted”.

But, there is a view among many analysts that the ongoing uncertainty is likely to continue to be a boon for gold. According to James Butterfill, head of research & investment strategy at ETF Securities, there have been continued inflows into not only gold but also silver and platinum in the past few weeks. And, he says, he expects to see further strength.

Source: PortfolioAdvisor