The gold price, on Tuesday, January 24, soared to another 2017 high and rose to its highest level since late November as worries over Donald Trump’s protectionist policy agenda took hold.
Spot gold touched $1,219 an ounce at one point last night, its highest since 22 November. That’s an advance of one per cent from Friday’s low and equates to a six per cent jump for January as a whole.
However, it is also around $120 an ounce below a peak on US election night on 8 November, says Mining.com.
However, once again gains were pared, this time by the dollar rebounding from overnight lows, which saw prices drop to $1,211 this morning.
Gold tends to fall when rates are rising, as it does not offer an income yield and so loses out to assets that do.
Reuters’ Wang Tao says the fact that “exhausted” gold failed to break its constraints could see it fall back again, perhaps to below $1,200.
The gold price continued to rise in overnight Asian trading on the back of a rebound on Friday, the day Donald Trump was inaugurated as US President.
Spot gold, which fell below $1,200 on Thursday, hit a high of $1,215 an ounce at one point, although gains pared slightly in early London trading.
Prices tumbled late last year after Trump’s surprise election victory, as investors focused on his spending and tax cuts promises, which could boost the economy and send inflation spiraling higher.
