Jim Cramer: Gold Should Be ‘Flying’ If Comey News Considered ‘Constitutional Crisis’
(Kitco News) - Despite the surprise move by President Donald Trump to fire FBI head James Comey Tuesday, the gold market is unable to attract any major safe-haven demand.
To financial commentator Jim Cramer, the reason gold hasn’t moved higher is because the issue is not considered a “constitutional crisis.”
“You know what, if this is a constitutional crisis, gold should be flying,” he told CNBC’s “Squawk on the Street” Wednesday.
“If this is a constitutional crisis, the S&P should be down a percent and a half.”
However, despite a rebound in early trading, the yellow metal continues to trade near 8-week lows. June Comex gold last traded at $1,220.50 an ounce, up only 0.36% on the day.
Gold is under pressure as investors shy away from the “fear trade” and the metal loses its safe-haven appeal. Gold’s lackluster performance comes as the CBOE Volatility Index remains at its lowest levels since 1993.