Gold has posted losses in the Thursday session. In North American trade, gold is trading at $1245.17 per ounce. On the release front, US Final GDP posted a gain of 2.1%, edging above the estimate of 2.0%. Unemployment claims jumped to 258 thousand, well above the forecast of 244 thousand. On Friday, we’ll get a look at consumer confidence levels, with the release of UoM Consumer Sentiment.
It’s been a rough-and-tumble start for the Trump administration, which has been beset by controversy and crises since Trump assumed office in January. Trump has yet to provide any details of an economic policy, to the consternation of the markets. Last week, Trump’s proposed healthcare bill was dead on arrival before even being voted on, a humiliating defeat for the president. This setback has made the markets even more jittery about Trump, and the inquiry into the Trump administration’s links with Russia is gathering steam, which is another cause for concern for nervous investors. Trump has said he will now focus on tax reform, but the White House will need to improve coordination with Republican lawmakers to ensure that his next attempt to pass legislation is not a repeat of the healthcare debacle. Still, despite all of Trump’s difficulties, he can at least point to a strong US economy, which shows no signs of slowing down. GDP in the first quarter was revised upwards to a respectable 2.1% and the labor market remains very strong. The markets may be looking for the Federal Reserve to be more aggressive, but the central bank is on course to raise rates twice more in 2017, a testament to an economy heading in the right direction.
