Gold
The precious metal has managed to regain its ground throughout trading this week, with Gold benefiting from the market reaction following the Trump administration pushing ahead with adopting some of their right-wing campaign promises early into his Presidential reign.
Investors are basically starting to doubt whether Trump will be more successful at fulfilling his campaign promises around protectionism, rather than the improved fiscal stimulus outlook and this has encouraged traders to hedge on Gold. Even though there is still a great deal of uncertainty in the market, including some of Trump’s policies, UK Prime Minister Theresa May stepping closer to invoking Article 50 and the upcoming elections throughout Europe,I still believe that Gold can continue to move higher over the longer-term.
Silver
The price of Silver has dipped lower from its three-month high earlier in the week and the metal is at risk to continuing to lose its gains if US economic data continues to highlight that the Federal Reserve might be in a position to raise US interest rates once again around the end of this quarter. While the current atmosphere around the markets is dominated by President Trump and his protectionist pledges, the US economic outlook remains strong and investors have not yet priced into the markets that the US central bank is keen to raise US rates on three occasions throughout the course of the year.
Oil
Confirmation that OPEC and Non-OPEC members are respecting their previous commitment to cut down on the production of oil has supported the commodity throughout trading this week, with the price of US oil maintaining its range between $52-$54. It is still possible that buyers will make an attempt to drive the valuation of oil even higher before the end of the current quarter, but traders should beware as we are approaching the level where it is expected that the taps will be turned back on when it comes to US shale production. If this leads to an increase in the supply in the markets then it risks offsetting the pledge from OPEC and Non-OPEC members at the end of 2016.