Donald Trump became only the third US president to face impeachment trial in the US Senate in a couple of weeks. However, no US president has been removed from office by impeachment. Bill Clinton and Andrew Johnson were both acquitted by the Senate. Richard Nixon resigned following the Watergate scandal when the US Congress took up impeachment proceedings against him. Unless he resigns aka Nixon, Donald Trump could not only sail through a Republican dominated Senate, but even get elected again as president.
As yet, gold has not been impacted by the impeachment proceedings. The precious metal’s basket is focussed on major Central banks announcing their monetary policy this week (BOJ on 21st, BOC on 22nd and ECB on the 23rd, with the US Fed on the 29th and the BOE on the 30th). These CBs could set gold’s agenda in the coming weeks. Moreover, the IMF is also to announce its growth predictions for the year this week. With the Chinese GDP at 6.1%, its lowest in over a couple of decades, gold could face uncertainty on physical demand from China. The oil blockage in Libya following a tussle for power over Libya could add to tensions in that region and help gold in the short term. The yellow metal inched forward during the day despite some headwinds and closed to end at $1,560.1 per ounce in London (pm fix). With US closed for the day, gold ended the day around that mark.
The domestic markets saw both the precious metals in a narrow range. While gold opened with a gain of Rs46 at Rs.40,115 per 10gms, it closed a shade lower at Rs.40,112 per 10 gms. Silver on the other hand not only opened higher but even closed with an overall gain of Rs.85 at Rs.46,640 per kg. As early Asian trade has not shown any reversal, gold and silver are both expected to open higher today in Mumbai (all prices IBJA rates). Only the rupees’ strength could curtail gold-silver prices.