Gold rose to a two-month high on Monday, as unease over the economic policies of US President Donald Trump pushed investors towards safer assets while the dollar and US bond yields fell. Trump formally withdrew the United States from the Trans-Pacific Partnership trade deal and told US manufacturing executives he would impose a hefty border tax on firms that import products after moving American factories overseas.
The US dollar fell to a seven-week low against a basket of key world currencies and global stock markets declined amid investor concerns over Trump's protectionist rhetoric.
Spot gold was up 0.6 percent at $1,216.33 an ounce by 3:22 pm EST (2022 GMT), after tapping $1,219.43, its highest since November 22. US gold futures settled up 0.9 percent at $1,215.6 per ounce.
"The story is one of a weaker dollar and political uncertainty," said Danske Bank analyst Jens Pedersen. Gold finished last week up 1 percent for its fourth straight week of gains after speculators raised their net long position in COMEX gold contracts for a second week in the week to Jan. 17.
"Momentum indicators are biased to the upside," said ScotiaMocatta analysts, targeting $1,255.70 an ounce. Among other precious metals, palladium was down 1.7 percent at $772.50 an ounce, after touching $795.60, its highest since May 2015. Silver rose 0.6 percent at $17.17 while platinum gained 0.4 percent at $980.40.
Comments
Comments are closed.