US dollar likely to rise on Trump’s speech

By: Mahmoud Gamal

Mubasher: Investors are expected to increase their positions in the American dollar within the coming weeks, after US President Donald Trump sent signals in his inauguration speech that support economy, analysts told Mubasher.

As a result, gold will witness profit-taking in the coming period, analysts added.

The dollar index fell 0.33% last week to reach 100.77 points, yet below its 14-year peak of 103.65 points recorded on 20 December 2016.

US gold futures increased 0.7% to $1,209.50 during that period.

The US dollar is expected to regain its strength next week as Trump rolled out financial stimulus in his news conference after he was sworn in, Alaa El-Din Farhan, an analyst at Capital Trust, told Mubasher.

Dollar will benefit from the statement of the European Central Bank’s (ECB) President Mario Draghi that highlighted the faltering eurozone economy.

Gold sees resistance at the level of $ 1,210 per ounce, Farhan added.

Gold will see correction if it reaches $1,220-1,215 per ounce, according to Mohamed Zeidan, analyst at ThinkMarkets.

Translated by: Julian Nabil

MUBASHER Contribution Time: 22-Jan-2017 05:18 (GMT)
MUBASHER Last Update Time: 22-Jan-2017 05:18 (GMT)