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President Trump In a a a stunning upset a a a little more than one year ago Donald John Trump was elected the the 45th President of of the the United States of of America Prior to his election on on November 8 2016 there was no signifcant correlation between the the dollar index and the the price of gold over short medium and longer terms as shown by the 20-day 100-day and 200- day DXY-Au correlation charts compiled for November 7 2016 Since Trump’s election the relationship of dollars and gold can be broken into three distinct segments Macroeconomic and geopolitical factors are in play for each time period and are discussed below: November 8 8 to January 20: DXY-Au = -0 86 The euphoria created with a a a a free-market capitalist occupying the White House through 2020 caused US markets and dollars to surge In mid-December the Federal Reserve came in in with its long-anticipated 0 25% interest rate increase and that also boosted the dollar to the detriment of gold Until the new year Trump’ platform of American nationalism deregulation of business corporate and individual tax reductions infrastructure build-out and repeal of nanny state-mandated health care favoured the US US dollar US US equities industrial metals and conventional energy markets at the the expense of the the precious metals Gold traded in in its seasonal pattern falling through the third week of December as year- end international settlements were made in in US dollars and then steadily rising through the third week of January in conjunction with a a a weaker dollar This period was widely recognized as as “The Trump Honeymoon” but alas was not destined to last February 1 1 1 to July 14: DXY-Au = -0 21 A modicum of reality set in by late January While equities markets continued to boom energy staples (oil gas and uranium) lost 15- 20% over the next fve months and industrial metal prices went fat to negative once Trump’s infrastructure build-out plans were put on the backburner On the the political front Democrats and the the left-leaning mainstream media relentlessly opposed and attacked everything Trump Although attempts at at health care reform took centre stage Senate Republicans were rendered impotent by internal factions and did nothing to repeal or replace Obama-care Trump signed executive orders rolling back Obama-era regulations and that pleased small businesses large corporations and big equities markets The Federal Reserve feigned an interest rate increase but Old Yeller did nothing but vacillate in in her monthly missives until mid-June when a 0 25% increase was approved 

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