Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Yellen and Trump Speeches Highly Anticipated by Investors

  by    0   0

Investors will have much to mull over this week as Donald Trump gives his first address to Congress, and Federal Reserve Chair Janet Yellen speaks Friday. After that, the FOMC goes into their blackout period in anticipation of their March 14-15 policy meeting.

Tuesday night, Donald Trump will give his first State of the Union address to Congress, which is expected to touch on immigration, tax cuts, regulation, Obamacare, trade agreements, defense, and homeland security. Investors are hoping Trump will lay out more specifics on his tax plan and trade policy.

Gold investors are waiting on more clarity from Trump as well, with prices holding steady Monday at a 3.5 month high, according to Reuters. “Since the beginning of the year, the gold price has always been on the rise,” said Jiang Shu, chief analyst at Shandong Gold Group. “This will draw more and more momentum traders into the market.”

Spot gold is expected to rise to $1,278 per ounce, “as it has more or less broken above resistance at $1,249,” according to Reuters technical analyst Wang Tao.

“The biggest driver of gold has been the relatively weak US dollar,” explained Shu. “People think that … Trump doesn’t want a strong dollar and the market thinks that perhaps there would not be a rate hike in the first half of the year.”

Investors are correct to think Trump is angling for a weak dollar given his comments during the 2016 campaign. Last month, Peter Schiff pointed out Trump’s unstated weak dollar policy:

“Donald Trump always talked about the overvalued dollar when he was a candidate. He didn’t always say, ‘the dollar is overvalued.’ He would say, ‘foreign currencies are undervalued,’ which is basically like saying the same thing only using different words … If he wants foreign currencies to appreciate, then by definition, he wants the dollar to depreciate.”

Yellen’s Friday talk will be a bellwether to investors of the Fed’s likelihood to raise rates in March. “It’s an opportunity to let markets know what she’s thinking and what the likely path of interest rates is going to be,” said PNC Deputy Chief Economist Gus Faucher.

Investors are only pricing in a 22% chance of an interest-rate hike in March, according to Bloomberg quoting CME Group’s FedWatch tool. The Trump State of the Union will almost certainly be an unorthodox and insightful event which will likely factor into the FOMC’s decision next month.

Get Peter Schiff’s latest gold market analysis – click here for a free subscription to his exclusive monthly Gold Videocast.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

Peter Schiff: Who’s Going to Pay for the Green New Deal? Because You Can’t Print Wealth

In his most recent podcast, Peter Schiff dug into the politics behind the Green New Deal and specifically asked a key question: who is going to pay for all this? Related

READ MORE →

A Record Number of Americans Are Delinquent on Their Car Payments

a check engine light is onA record number of Americans have fallen behind on their car payments. On Tuesday, the New York Federal Reserve released its Household Debt and Credit report covering the fourth quarter of 2018. Not only has indebtedness hit record highs, eclipsing levels seen on the eve of the Great Recession, but Americans are also having a […]

READ MORE →

US Household Debt Breaks Another Record

The national debt has pushed above the $22 trillion mark, but it’s not just Uncle Sam borrowing himself into oblivion. US household debt climbed to a record $13.54 trillion in the fourth quarter of 2018, according to a report released by the Federal Reserve Bank of New York. Total household debt (including mortgages) now stands $869 billion […]

READ MORE →

National Debt Tops $22 Trillion

The national debt has pushed beyond the $22 trillion mark. According to Treasury Department data released Tuesday, the national debt now stands at $22.01 trillion. When President Trump took office in January 2017, the debt was at $19.95 trillion. That’s a $2.06 trillion increase in the debt in just over two years.  Related

READ MORE →

The US Government Has Spent Itself Inbetween a Rock and a Hard Place

As we pointed out in an article last week, the US federal government has added $1.5 trillion to the national debt over the last 12 months. As a result, the US Treasury Department is flooding the market with bonds. Meanwhile, the biggest buyers of US debt – China, Japan and the Federal Reserve – are […]

READ MORE →

Comments are closed.

Call Now