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Trump’s Opening Orders and Gold

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Published : January 25th, 2017
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Category : GoldWire

The new president took a few executive actions this week. What do they mean for the gold market?

So it began. On Monday, Trump signed three presidential directives. First, he withdrew U.S. from the Trans-Pacific Partnership. Second, he imposed a hiring freeze on all federal workers, except military. Third, he prohibited federal funding for foreign nongovernmental organizations that promote or pay for abortions.

On Tuesday, President took three more executive actions. First, he approved the Keystone pipeline. Second, he approved the Dakota Access pipeline. Third, he signed an order to speed up the environmental review of infrastructure projects. And as a reminder, on Friday night, Trump signed an executive order aimed at minimizing the economic burden of the Obamacare and allowing the federal government to start dismantling it.

With the exception of the Trans-Pacific Partnership, all moves look reasonable and mark a nice start, at least for the business circles. Although Trump did not fulfill most of his earlier promises, he is not wasting time, giving an impression of enacting policies based upon past pledges. He promised a withdrawal from the TPP – and it’s gone. He declared himself as a pro-life, anti-environmentalist and anti-Obamacare – so we got adequate orders. This is probably why the risk trade returned to the markets yesterday and the U.S. dollar pulled away from multi-week lows, while the price of gold declined.

The bottom line is that Trump took several executive actions over the last few days. We got a mixed bag of protectionism, fiscal austerity, structural reforms and support for energy infrastructure projects. It seems that markets do not like the protectionist stance – this is why gold shined after Trump’s harsh inaugural speech – but welcome signals of easing regulation and fiscal stimulus. Therefore, the impact of the new president on the gold market will depend on which side of Trump’s nature will prevail – the protectionist or pro-growth. Stay tuned!

If you enjoyed the above analysis, we invite you to check out our other services. We focus on fundamental analysis in our monthly Market Overview reports and we provide daily Gold & Silver Trading Alerts with clear buy and sell signals. If you’re not ready to subscribe yet and are not on our mailing list yet, we urge you to join our gold newsletter today. It’s free and if you don’t like it, you can easily unsubscribe.

Disclaimer: Please note that the aim of the above analysis is to discuss the likely long-term impact of the featured phenomenon on the price of gold and this analysis does not indicate (nor does it aim to do so) whether gold is likely to move higher or lower in the short- or medium term. In order to determine the latter, many additional factors need to be considered (i.e. sentiment, chart patterns, cycles, indicators, ratios, self-similar patterns and more) and we are taking them into account (and discussing the short- and medium-term outlook) in our trading alerts.

Thank you.

Arkadiusz Sieron
Sunshine Profits‘ Gold News Monitor and Market Overview Editor

Gold News Monitor
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Przemyslaw Radomski is the founder, owner and the main editor of www.SunshineProfits.com. Being passionately curious about the market’s behavior he uses his statistical and financial background to question the common views and profit on the misconceptions. “Don’t fight the emotionality on the market – take advantage of it!” is one of his favorite mottos. His time is divided mainly to analyzing various markets with emphasis on the precious metals, managing his own portfolio, writing commentaries, essays and developing financial software. Most of the time he’s got left is spent on reading everything he can about the markets, psychology, philosophy and statistics. Mr. Radomski has started investigating the markets for his private use well before starting his professional career. He used to work as an informatics consultant, but this time-consuming profession left him little time for his true passion – the interdisciplinary market analysis. Establishing www.SunshineProfits.com gave him the opportunity to put his thoughts, ideas, and experience into form available to other investors.
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