Gold’s Haven Status Refreshed as Trump’s Turmoil Wounds Stocks

Bloomberg/Ranjeetha Pakiam/05-18-17

Gold traded near a two-week high as the disarray engulfing Donald Trump’s White House boosted the commodity’s allure as a haven, with equities in retreat and investors scaling back the odds of the Federal Reserve tightening policy next month. Other precious metals fell.

…Gold is benefiting as Trump faces the biggest crisis of his presidency after a series of damaging revelations, including reports he pressed FBI Director James Comey to drop a probe into former National Security Adviser Michael Flynn. As the potential implications of the claims reverberated through Washington, equities sank and the dollar traded near the lowest since November. While the White House has denied Comey’s version, there’s concern the administration won’t now be able to implement its economic agenda.

“People are now worried that he may get impeached,” said Brian Lan, managing director of Singapore-based GoldSilver Central Pte, referring to Trump. “So safe-haven assets are now back in.”