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    JM Bullion Gold and Silver Market Update (1/23/17)

    Gold Spot Price Open: $1,213

    Gold Spot Price Close: $1,221

    Change in Gold Spot Price: +$8

    Silver Spot Price Open: $17.18

    Silver Spot Price Close: $17.19

    Change in Silver Spot Price: +$0.01

    Precious metals gained more ground to start off the week thanks, in part, to the signature of newly-inaugurated President Donald Trump. When all was said and done, gold managed to add about 8 dollars while silver remained mostly steady and added only a penny. Platinum gained a dollar or two on the day, but palladium moved backwards by more than 10 dollars.

    Trump Abandons TPP

    The first significant, headline-making move made by Donald Trump was his signing of an executive order that effectively removed the United States from the Trans-Pacific Partnership. Trump supporters are rejoicing in the wake of this signature mostly due to the fact that it is something he promised to do throughout the whole of his campaign. Donald Trump frequently blasted the deal as being ineffective and contrary to the growth of US businesses.

    In addition to signing this order, President Trump spoke with business leaders earlier in the day with regard to potential taxes being levied against imported goods. In addition, he explained that those companies looking to build manufacturing facilities within the United States will be subject to a streamlined approval process.

    Stocks ended up performing poorly on the day as what Trump did was seen as a protectionist move. With regard to the economy and performance of stocks, the US making moves to be more protectionist is something that will not help stocks all that much. For precious metals, the protectionist actions and promises of President Trump will only work to boost safe-haven demand. Continuing to underpin safe-haven demand is the continued uncertainty with regard to what campaign promises Trump will or will not live up to. Being that we are still early on in his presidency, it is tough to gauge what will happen in the future.

    Safe-Haven Demand Remains on the Rise

    Safe-haven demand is still strong mostly because the business world is unsure what Trump is going to do this week. He promised to make many changes through his first few weeks as President, and his move with regard to the TPP leaves investors reason to believe that other significant changes may be on the horizon.

    A big promise that Trump made was that he is going to both cut regulations and taxes on US businesses. This is something that was discussed as he met with business leaders on Monday. In the end, cutting taxes and regulations may be something that helps stocks, but for now we are seeing it have a negative impact on equities. The feeling is that the US marketplace is going to change entirely over the next 4 years, and with that possibility on the table investors are afraid to make any sort of big changes. So long as the uncertainty abounds—and many people believe that it will be hanging around for some time now—precious metals should be able to perform decently. How far spot values are going to venture forward is still not clear, but for now the marketplace is conducive to metals making gains.

    Wrap-Up

    Monday was not the most eventful day in recent history, but it did give us reason to believe that the next 4 days are going to be jam-packed with news from the new President. For now, gold and silver are moving upward and have been for the better part of the last month or so. Right now they are staying above key pricepoints, however that can change in an instant. Looking ahead to the rest of the week, there will be plenty of economic and presidential activities to look forward to.

    Disclaimer: All Market Updates are provided as a third party analysis and do not necessarily reflect the explicit views of JM Bullion Inc. and should not be construed as financial advice.

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