Deutsche Fund Claims Trump’s Unpredictability Affects Gold Prices

APMEX

6/22/2018 1:38:53 PM

Daily Gold & Silver Market Report – 06/22/2018

Prompted by public arguments between trade leaders in the U.S. and China, many investors have turned to traditionally low-risk investments such as the U.S. dollar, Japanese yen and Treasuries. Historically, Gold investments also increase during turbulent times, but many investors seem to be overlooking this conventional haven. While some industry leaders point to higher transaction costs in trading bullion as a factor, Darwei Kung, a portfolio manager for Deutsche Enhanced Commodity Strategy Fund, also believes President Donald Trump’s abrupt policy changes and alternating stances on tariffs make Gold less appealing. This is because Precious Metals investments are usually held for long periods of time and investors want to remain agile in changing strategies as frequently as the Trump Administration changes policy. Kung says the president’s unpredictability “dulls the effect” of Gold, Bloomberg reports.

Palladium Prices Rise $100 Above Platinum

Platinum prices have been falling since September 2017 and at one point this week, the price per ounce dipped to nearly $100 below that of Palladium. This price discrepancy has confused many analysts who say the current demand for Palladium should be near zero. Car manufacturers use Platinum as a component of catalytic converters because of its proven record in reducing vehicle emissions. In the marketplace, Palladium is considered a low-cost alternative to Platinum, used by automakers to save money in budget-priced cars and trucks. With the cost per ounce of Palladium on the rise, some predict demand for Platinum will soon increase since it is a superior performer in reducing emissions. (Seeking Alpha)

Irish Banks Freeze Accounts of Bitcoin Traders

Recent reports point out several Irish banks that have denied financial services to cryptocurrency brokers. These actions have led several Bitcoin traders to close their doors or open accounts in banks on foreign shores. According to a report that first appeared in The Irish Times, later cited by Bitcoinist, two popular Bitcoin trading platforms in Ireland, Eircoin and Bitcove, have had accounts closed by banks on grounds that the financial institutions changed their policies to exclude support of cryptocurrency exchange facilities. Allied Irish Banks released a statement saying they do not discriminate against cryptocurrency dealers, but their accounts may have been closed due to some other breach of compliance. Central banks in Chile, Iran and India are also known to prohibit accounts funded by cryptocurrency.

At 1:31 p.m. (ET), the APMEX Gold and Silver spot prices were:

• Gold, $1,271.20 Up $0.20
• Silver, $16.52 Up $0.12
• Platinum, $877.90 Up $11.70
• Palladium, $958.60 Up $5.00

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