A Market Bombshell? India Faces Potential Gold Import Ban

Gold has been unable to hold on to its gains Tuesday; the metal has fallen more than $100 an ounce from its post-election peak as U.S. Treasury yields posted their biggest rise in more than five years. Some analysts would argue that initially, the news of President-elect Trump's victory brought about a flight to safe-haven assets, such as gold, but the trend has since reversed as the dollar and bond yields surged on expectations of higher U.S. spending and interest rates. 'We caution that the proposals uttered by President-elect Donald Trump are merely that and until a clear understanding of how these will be paid for is advanced, the debt explosion that will occur will be massive. With higher rates, the cost of servicing this debt will rise dramatically," said Peter Hug, global trading director for Kitco Metals. But could another more massive scenario be unfolding and could it be more than the Trump effect that has been weighing on gold? India is facing a potential ban on gold imports, which could cause a potential, one-day $200 drop in gold prices, Peter Hug comments. Some analysts are saying that if it unfolds, it could be the biggest bombshell to the industry since 1971, when President Nixon took the dollar off the gold standard. December Comex gold futures settled the trading session slightly higher at $1,211.20 an ounce, up 0.12% on the day. (show less)

Gold has been unable to hold on to its gains Tuesday; the metal has fallen more than $100 an ounce from its post-election peak as U.S. Treasury yields posted their biggest rise in more than five years. Some analysts would argue that initially, the news of President-elect Trump's victory brought about a flight to safe-haven assets, such as gold, but the trend has since reversed as the dollar and bond yields surged on expectations of higher U.S. spending and ... (read more)

 
 
For Pete's Sake!

For Pete's Sake!
From the latest market-making swings to the forward-looking important events that could impact the markets, For Pete's Sake with Peter Hug breaks down the news. He reviews the latest information coming out of North America, Europe and Asia to help you decide how to play the week. Tune in every week to get his key price ranges for gold and find out why he hates to talk about the Fed.

 

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