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Gold & Silver Log Significant Gains amid Political Turmoil in USA

May 17, 2017 at 18:13 by Vladimir Vyun

Gold and silver logged significant gains during the current trading session amid political turmoil in the United States. Some US politicians accused President Donald Trump in sharing classified information with Russia. That happened a week after the controversy surrounding the surprise firing of FBI chief James Comey. Additionally, Trump needs to explain why he asked Comey to shut down a probe into the actions of his former National Security Adviser Mike Flynn.

All the controversies and uncertainty led to doubts that Trump will be able to implement fiscal reforms that he promised during elections. And what is more, markets started to doubt that the Federal Reserve will be able to hike interest rates three times in total this year as it was expected previously.

The news resulted in a surge of risk aversion, and that was beneficial to safe haven assets, like gold. On top of that, the news hurt the dollar, and metals usually trade in a reverse correlation to the US currency.

June contract for delivery of gold jumped as much as 1.83% to $1,259 per troy ounce as of $18:04 GMT on COMEX today. July futures for silver added 1.12% to their value to trade at $16.94 per ounce.

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