The gold price is on track today to rack up its 8th straight day of gains as optimism for US president Donald Trump’s tax plan fades into the background amid fears it will benefit the wealthy at the expense of the ordinary citizen.
With just hours or day’s remaining before Trump signs into law the biggest tax changes of a Generation, gold is shrugging off earlier predictions that investors would pile into the US dollar at the expense of other assets.
Although the changes are certain to be endorsed and signed by Trump, public sentiment surrounding the plan is less than enthusiastic and the Presidents republican party face losing
their majority in the senate next year as a protest against the changes.
With the tax bill now out in the open, gold has fewer surprises and the uptrend that began almost 2 weeks ago has no reason to stop although there may be some resistance at current levels which was a previous support.
“The tax reform passing, you’d expect the market to celebrate that,” said Kevin Caron, a senior portfolio manager at Washington Crossing Advisors,
“But in reality a lot of this has already been part of the drama over the last year or so in anticipation of this moment. The market has gotten what it has already been discounting in.” he added.