Investors flock to safe haven assets such as gold...
By Daryl Jackson, News Editor
27 Mar 2017
Donald Trump's setback on Friday has helped to push up the price of gold to a one-month high.
The President's failure to pass the US healthcare bill on Friday has led to worries that Trump won'y be able to deliver on his promises laid out in the election campaign.
Gold rose by as much as 1.1pc to $1,258 an ounce after investors stampeded to safe haven assets on Monday morning.
Speaking in The Daily Telegraph this morning, Naeem Aslam, of Think Markets, says the reason for the panic which is triggering market’s selloff, which is actually across the board, is it’s intensity, especially in those sectors which we mentioned a few ago in our special report.
"Investors are anxious to see if the big infrastructure and tax reform bills will have any shot of making it in the House and if Congress is going to give them their blessing rather than tough time.
"It is this in particular which is prompting the panic in the market and has everyone running for the hills. The king dollar is being beaten down today against a basket of major currencies. Everyone wants to find themselves a safe bet as trading begins today."
Meanwhile, Kathleen Brooks, of City Index, told the newspaper that she reckons the markets are having their own 'Trump Tantrum' as investors seriously doubt whether the President’s abrasive style will work in Washington.
"The Trump “disappointment trade” is now in full swing. The biggest losers on the Dow Jones last week were Goldman Sachs, Du Pont, Pfizer and Boeing, all companies that were reliant on Trump’s policy agenda. We expect losses from banking stocks, materials and construction firms, and healthcare companies in the next few days as the markets adjust to this set back for Trump. How he reacts will be crucial, so we will watch his Twitter account with a close eye. A spat with Congress is likely to keep the markets on edge, weigh on stock markets globally and push up volatility."