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[basserdan]

Trump may add shine to gold as new leaders create risk

Gold bugs can look to history, with bullion recording average gains of 15% in inaugural years since the 1970s

By Asia Times
January 20, 2017 8:30 AM (UTC+8)


Developer Donald Trump holds three bars of Gold Bullion after accepting it as a security deposit from the American Precious Metals Exchange (APMEX) for a 10 year lease for APMEX on the 50th floor of 40 Wall Street in New York City, a Trump owned property, during a news conference in New York, September 15, 2011. REUTERS/Mike Segar

The first year of any administration is a time of flux and increased risks — and some would argue that Donald Trump adds more than the usual frisson markets can expect from a US presidential handover.

The spot price of gold has gained almost 5% this year, trading around US$1,204 an ounce early on Friday. Bulls can take a look at history for reassurance: since the precious metal has jumped on average 15% in years marking the inauguration of a new president since Gerald Ford was sworn in in 1974, Bloomberg points out. For five in seven of those years, gold bugs rang in the new year in positive territory; the S&P 500 stock index fell almost 1% on average each year over the same period, declining in four out of the seven, the financial data company said.

http://www.atimes.com/article/trump-may-add-shine-gold-new-leaders-create-risk/