Gold Gains as Trump Shocks Markets by Doing What He Said He’d Do

Gold rose for a third day, set for its best month since June, as President Donald Trump fired the U.S. acting attorney general over his order barring entry by citizens from seven predominantly Muslim nations.

The White House’s dismissal of Sally Yates, describing her refusal to uphold the executive order as a betrayal, added to a dawning realization among investors that Trump will follow through on pledges made during his election campaign.

“The gold market is in thrall to the Donald Trump show,” David Govett, head of precious metals trading at Marex Spectron, said by e-mail from London. “If Trump sticks to his immigration policy of the last few days, then gold should remain supported.”

The metal rose 0.3 percent to $1,199.07 an ounce by 10:36 a.m. in London as investors sought a haven and stocks fell. A gauge of shares around the world fell for a fourth day, the longest run since before the U.S. election.

Gold is set for its strongest month since Britain’s decision to leave the European Union in June, according to Bloomberg generic pricing.

Trump won office with campaign promises including ending admission of refugees from war-torn Muslim majority countries, rewriting or abandoning trade agreements and ending the decline in U.S. manufacturing jobs.

“Uncertainty will keep equities and the dollar soft as the market comes to terms with the fact that Trump is the first politician in living memory, or ever, to actually enact every electoral promise he had made to the letter,” Jeffrey Halley, a senior market analyst at Oanda Corp. in Singapore, said by e-mail. “Gold and other safe-havens should be the main beneficiaries.”

In other precious metals: 
Spot silver climbed 0.4 percent to $17.1955 an ounce. It is up 8 percent this month.
Palladium rose 1.1 percent, and is up 10 percent in January.
Platinum fell 0.2 percent to $988.33 an ounce. It’s up 9.4 percent this month.

by Ranjeetha Pakiam and Eddie Van Der Walt

‎January‎ ‎31‎, ‎2017‎