Headlines from May 9 – 12:
- Donald Trump behind this year’s rally in gold? (Kitco)
Donald Trump’s popularity might be the reason for the rise in gold prices since the start of the year. The metal is up 20 percent year-to-date and some analysts believe that Trump’s success in the presidential race is bringing about uncertainty. During uncertain times, investors flock towards the “safe-haven asset” of gold. On the flip side, the rise in gold may have more to do with the Federal Reserve’s recent indications that it won’t hike short-term interest rates so soon, amid global growth worries.
- Gold pushes above unchanged as jobless claims data dents U.S. dollar (Kitco)
Gold prices moved to higher levels on Thursday, after trading moderately lower in overnight action. A significantly downbeat U.S. jobless claims report released just after the Comex gold futures market opened put downside pressure on the U.S. dollar index, which in turn helped to lift gold prices above unchanged. June gold was last up $1.70 an ounce at $1,277.20.
- Federal Reserve offering term deposits starting May 19 (Federal Reserve)
The Federal Reserve plans to continue its previously announced periodic testing of the Term Deposit Facility (TDF) with one operation in May. These operations are aimed at ensuring the operational readiness of the TDF and providing eligible institutions with an opportunity to maintain familiarity with term deposit procedures. On May 19, 2016, the Federal Reserve will conduct a floating-rate offering of term deposits with an early withdrawal feature through its TDF. The Federal Reserve will offer seven-day term deposits with a rate set equal to the sum of the interest rate paid on excess reserves plus a fixed spread of 1 basis point.