Gold Gains, Stock Futures Fall on News Trump Under Investigation
- The Washington Post has reported that US President Trump is under personal investigation by special counsel
- The Bureau is reportedly looking into whether the President obstructed justice
- Markets just digesting the Federal Reserves’ policy call now have something else to chew over
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Gold prices rose and US stock futures slipped as Asia/Pacific trade got under way Thursday to news that US special counsel Robert Mueller is now looking into whether President Tump himself attempted to obstruct justice.
The Washington Post reported that the President is now personally under scrutiny, which had not previously been the case. Mueller was initially appointed to investigate possible collusion between Donald Trump’s election campaign and Russia. But questions as to whether the President himself acted inappropriately have raged since former FBI Director James Comey told the Senate last week that Trump directed him to end a Bureau investigation of former national security advisor Michael Flynn.
The Post cited five officials who it says spoke to it on condition of anonymity. Investigators are also looking for evidence of any possible financial crimes among Trump associates, the officials reportedly said.
This latest twist in the President’s saga will at the very least remind markets that suspicions are not going to dissipate anytime soon. US stock futures were down across the board, by between 0.2 and 0.5% while haven gold prices rose.
Spot Gold vs. S&P 500 futures vs. Japanese Yen (5min chart)
Chart created using TradingView
Asian markets’ other focus will also be the aftermath of the US Federal Reserve’s June policy meeting. The central bank increased interest rates, as expected, and said it plans to do so again.
--- Written by David Cottle, DailyFX Research
Contact and follow David on Twitter:@DavidCottleFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.