Gold Shoots Up by 0.9% to $1,219.10 an Ounce

Gold

Gold prices on Thursday, February 2, moved toward their best finish since mid-November, as slack in the dollar and diminished appetite for assets perceived as risky lured bidders to precious metals.

April gold GCJ7, +0.83% shot up $10.80, or 0.9%, at $1,219.10 an ounce after tapping a high above $1,227. A settlement around the current trading level would be the highest since Nov. 16, according to FactSet data. March silver SIH7, +0.34% rose 12 cents, or 0.7%, to $17.565 an ounce.

“A vulnerable dollar coupled with the persistent Trump uncertainties has bolstered gold’s safe-haven allure,” said Lukman Otunuga, research analyst at FXTM, in a note.

“This yellow metal seems to be back in fashion in the short term with further inclines expected as investors scatter from riskier assets to safety.”

“The marketplace is buzzing about a reportedly contentious conversation between U.S. President Donald Trump and Australian Prime Minister Malcom Turnbull, regarding refugees in Australia that were to be headed for the U.S.,” said Jim Wyckoff, senior analyst at Kitco.com.

Gold ‘seems to be back in fashion in the short term with further inclines expected as investors scatter from riskier assets to safety.’

The ICE U.S. Dollar Index DXY, -0.14% a gauge of the buck against a basket of six currencies, fell 0.2%. Moves in the U.S. dollar can influence the appeal of dollar-denominated gold to holders of other currencies.

And, gold tends to move inversely to Treasury yields TMUBMUSD10Y, -0.15% since gold offers no yield; yields fell Thursday.

Other metals saw mixed trading on Comex, with March copper HGH7, -1.18% down 3.3 cents, or 1.2%, at $2.68 a pound, April platinum PLJ7, +0.19% up $3.40, or 0.3%, at $1,003.20 an ounce and March palladium PAH7, -0.22% falling $1.80, or 0.2%, at $764.70 an ounce.

The SPDR Gold Trust GLD, +0.43% rose 0.6%, the iShares Silver Trust SLV, -0.30% added 0.1%, and the VanEck Vectors Gold Miners ETF GDX, +1.67% tacked on 1.9%.

 

 

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